Doosan Heavy Industries and Construction Co., South Korea’s largest power generator manufacturer, is expanding its presence in the fast growing Vietnamese market.
On Monday, Doosan Heavy Industries signed an agreement to collaborate with Vietnamese concerns in increasing the country’s capabilities in producing electricity generating equipment.
Under the agreement, Doosan Heavy Industries will work as part of a consortium with the Vietnamese construction company Lilama Corp. and the National Research Institute for Mechanical Engineering in building two coal-fired power stations with four 600 megawatt generators.
|Doosan Heavy Industries and Construction vice president Suh Dong-soo (left) shakes hands with AES-VCM president Ian Fox (right) in Seoul after signing the contract for Vietnam’s Mong Duong coal-fired power station on Dec. 10. (Doosan Corp.)|
The company also signed a preliminary agreement regarding the construction for one of the two projects with the state-run Vietnam National Coal, Mineral Industries Holding Corp. on Monday.
The final contract for the project will be signed during the second half of next year, and that for the remaining power station will be concluded at a later date, the company said.
“Being selected as a partner in the project is the result of contributing to the economic development of Vietnam since 1995,” Doosan Heavy Industries CEO Park Gee-won said in a statement following Monday’s agreement.
Having entered the market 15 years ago, Doosan Heavy Industries currently operates two production facilities in Vietnam.
The company is hoping that its involvement in the project will give it an advantage in taking part in future power plant projects in Vietnam.
According to the company, Vietnam’s electricity demand is increasing by up to 17 percent on an annual basis, requiring the country’s power generating capacity to be increased by as much as 5,000 megawatts each year.
As the demand for power supply rises, Doosan Heavy Industries’ operations in Vietnam have also been picking up pace.
On Dec. 10, the company was awarded the contract for building the Mong Duong 2 coal-fired power plant in Quang Ninh, 160 kilometers north east of Hanoi.
Under the $1.3 billion contract, the company will build a 1,200-megawatt power plant for AES-VCM, the Vietnamese subsidiary of the U.S.-based AES Corp.
In addition to the two most recent contracts, the company is taking part in a wide range of projects in Vietnam including a 160 billion won ($138 million) contract for building a 39.52-km stretch of the 244 km expressway connecting Hanoi to the northern province of Lao Cai, and a $54 million contract supplying heat recovery steam generators for a power station near Ho Chi Minh City in southern Vietnam.
While the company’s operations in Vietnam have been at the center of attention, Doosan Heavy Industries and Construction has also been making headway in other Southeast Asian markets.
In September 2007, it became the first Korean firm to enter Indonesia’s market for power generation equipment when it was contracted to build a coal-fired power station in Cirebon on the northern coast of Java.
Later the same year the company was awarded a contract for two 100 megawatt generators in the Philippines, which are due for completion during the first half of next year.
By Choi He-suk (email@example.com