GE Power has signed a purchase agreement to acquire the heat recovery steam generator business of Doosan Engineering & Construction for $250 million. The acquisition, says GE, will help it meet the growing demand for its combined cycle power plant solutions, which utilise HRSG technology.
"With the Alstom acquisition, we are now offering full power plant solutions. We are seeing an even greater demand for our highest-efficiency HA heavy-duty gas turbine plants," said Steve Bolze, president and CEO of GE Power. "The Doosan Engineering & Construction HRSG acquisition will help us meet our forecasted growth and better manage costs by increasing our global manufacturing capacity and further complementing our existing HRSG technology."
Korea based Doosan has been a supplier to both GE and Alstom since 2007. Upon completion of the sale, Doosan's HSRG business will be integrated into GE Power's Gas Power Systems division, which already includes Alstom's legacy HRSG business.
"We're seeing HRSG demand that is more than double historical averages," said Joe Mastrangelo, president and CEO of GE Gas Power Systems. "Our investment in Doosan HRSG will ... allow us to be faster and better as we ramp to meet customers' needs."
Doosan HRSG has three manufacturing facilities, one in Korea and two in Vietnam. In operation since 1977, it currently has more than 1400 employees specialising in engineering, project management and manufacturing.