Acquisition secures proprietary turbine technologies for Doosan, completing the company’s full lineup of power generation equipment, Deal positions Doosan to emerge as a leading global power solution provider
On December 8, Doosan Heavy Industries & Construction(President & CEO Geewon Park) completed the acquisition of Czech power plant equipment maker Skoda Power a.s., one of only a handful of firms worldwide to possess proprietary technologies in the steam-turbine field. Skoda Power has supplied more than 450 turbines to utilities in 62 countries worldwide since it began turbine production in 1904.
With this acquisition, Doosan now has core technologies for boilers, turbines, and generators——the three key components of modern fossil fuel power plants– —-positioning the company to join global leaders at the top of the industry in the coming years.
The acquisition also makes it possible for Doosan to expand its presence in the retrofit and other profitable power plant service markets, giving the company the ability to compete with the global industry leaders across the entire power generation value chain.
Turbines are considered the most technically advanced pieces of equipment in the power generation field. Manufacturers with proprietary technologies in the turbine field have a significant competitive advantage over those who do not. Doosan expects the access to proprietary turbine technologies this acquisition provides to dramatically improve its competitiveness in the power plant equipment business as well as significantly expand business opportunities going forward.
The first benefit the acquisition brings is that Doosan is now able to build and supply turbines for engineering, procurement, construction (EPC) projects rather than purchasing from third-party suppliers. Another benefit is that Doosan will have a full boiler-turbine-generator (BTG) lineup, allowing it to pursue more profitable BTG package orders, a market segment open only to the top industry players. Commenting on the deal, President and CEO Geewon Park said, “We expect the synergies of the Skoda Power acquisition to generate an additional USD 4.26 billion in annual revenue in 2020. In the coming years, Skoda Power and Doosan Babcock Energy will spearhead our progressive expansion in Europe, the US, and other developed markets.”
Doosan is currently in the process of setting up Doosan Power Systems to oversee Skoda Power and Doosan Babcock as well as its power solutions business in Europe and the Americas, laying the groundwork for a full-scale advance into those markets.