Doosan Heavy Industries & Construction (DHIC) says that the acquisition of Skoda Power of the Czech Republic will position it as a leader in the global power plant equipment market.
The Korean firm has signed an agreement to buy Skoda Power, which is one of only a few companies worldwide to possess proprietary technologies in the steam turbine field. The deal is expected to close by the end of the year and will help Doosan to expand its business in new markets.
Doosan is planning to establish a new unit known as Doosan Power Systems to oversee Skoda Power and its UK subsidiary, Doosan Babcock Energy. It is aiming to increase its revenues from turbine gensets, and said in a statement that it has set its sights on becoming a top-tier supplier on the global turbine market.
Commenting on the deal, DHIC President and CEO Geewon Park said, “We expect the synergies of the Skoda Power acquisition to generate an additional $4.26 billion in annual revenue in 2020. In the coming years, Skoda Power and Doosan Babcock will spearhead our progressive expansion in Europe, the US, and other developed markets.”
The acquisition of Skoda Power and access to its proprietary turbine technologies will not only add to Doosan’s core capabilities in the power generation market but also improve its competitiveness in the field. It will become a complete plant supplier with the ability to provide single-source engineering, procurement and construction solutions.
The deal also makes it possible for Doosan to enter the retrofit and other profitable power plant services markets, enabling the company to compete with global industry leaders across the entire power generation value chain.
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