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GE Power Expands Offerings and Capability by Acquiring Doosan Engineering & Construction Heat Recovery Steam Generator Business

GE

GE Power Expands Offerings and Capability by Acquiring Doosan Engineering & Construction Heat Recovery Steam Generator Business

  • Complements GE’s Existing Technology Acquired through Alstom
  • Increases Engineering and Production Capacity to Meet Strong Demand
  • Provides Added Global Manufacturing Footprint and Technology

GE Power, a division of GE (NYSE:GE) today announced that it has signed a purchase agreement to acquire the Heat Recovery Steam Generator (HRSG) business of Doosan Engineering & Construction (011160 KOSPI) for $250 million. The Doosan Engineering & Construction HRSG acquisition will help GE Power meet the growing demand for its combined-cycle power plant solutions, which utilize HRSG technology, and continue to expand its customer offerings.

“With the Alstom acquisition, we are now offering full power plant solutions and 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. We’re also gaining a talent pool that is one of the best in the world.”

Doosan Engineering & Construction HRSG—Korean-based world leader in engineering, equipment and infrastructure—has been a trusted and reliable supplier to both GE and Alstom and has a long and proven history as an Alstom licensee. Upon completion of the sale, Doosan Engineering & Construction HSRG will be integrated into GE Power’s Gas Power Systems business, 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 Engineering & Construction HRSG will bring us cost-effective, vertically integrated manufacturing and engineering capacity that will allow us to be faster and better as we ramp to meet customers’ needs.”

Doosan Engineering & Construction’s Capabilities

Doosan has three advanced manufacturing facilities, including one in Korea and two in Vietnam. In operation since 1977, Doosan Engineering & Construction HRSG currently has more than 1,400 employees specializing in engineering, project management and manufacturing. Doosan Engineering & Construction HRSG has been a supplier to GE and others and has been a long-term licensee of Alstom technology until 2007.

HRSG & Combined-Cycle Solutions

HRSG technology is a critical component of a combined-cycle power plant. Capturing the exhaust heat from the gas turbine, the water is converted into steam, which is then used to drive a steam turbine to produce additional power output. HRSG technology is critical to the efficiency of a combined-cycle plant and can help generate up to 33 percent of the power output of the plant.

About Doosan Engineering & Construction HRSG

The HRSG division manufactures and distributes HRSGs (Heat Recovery Steam Generator) to combined-cycle power plants at home and abroad. The division has successfully installed and operated HRSGs not only for domestic combined-cycle power plants in Boryeong, Busan and Incheon, but also for combined-cycle power plants in various continents around the world, including Europe, Asia and Africa.

About GE

GE (NYSE:GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com

About GE Power

GE Power is a world leader in power generation with deep domain expertise to help customers deliver electricity from a wide spectrum of fuel sources. We are transforming the electricity industry with the digital power plant, the world’s largest and most efficient gas turbine, full balance of plant, upgrade and service solutions as well as our data-leveraging software. Our innovative technologies and digital offerings help make power more affordable, reliable, accessible and sustainable.

For more information, visit the company's website at www.gepower.com and follow us on Twitter @GE_Power.

GE Power
Katie Roberts Jackson, + 1518-385-5976
katie.jackson@ge.com



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