GE Completes Acquisition of Doosan Engineering & Construction Heat Recovery Steam Generator Business
- Helps Meet the Growing Demand for GE’s Combined-Cycle Power Plant Solutions
- Increases Engineering and Production Capacity to Expand Customer Offerings
- Provides Expanded Leadership in Engineering, Equipment and Infrastructure
SCHENECTADY, N.Y.-August 16, 2016-GE Power, a division of GE (NYSE: GE), today announced that it has completed the acquisition of the Heat Recovery Steam Generator (HRSG) business of Doosan Engineering & Construction (011160 KOSPI) for $250 million. Originally announced in May, 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.
“Today, we welcome Doosan Engineering & Construction’s HRSG business as the newest member of the GE Power family, following a longstanding partnership with both GE and Alstom,” said Joe Mastrangelo, president and CEO of GE’s Gas Power Systems. “As we expand demand for our HA gas turbines and efficient combined-cycle solutions, a critical part of having the best integrated offering includes Heat Recovery Steam Generators (HRSGs) that enable better plant performance and cost. This acquisition brings expanded leadership in engineering, equipment and infrastructure to our portfolio and positions us to be a global leader in HRSG.”
Doosan Engineering & Construction HRSG-a 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. Doosan Engineering & Construction HSRG will now be integrated into GE Power’s Gas Power Systems business, which already includes Alstom’s legacy HRSG business.
For GE and customers, this new acquisition will bring:
- Capability: The acquisition brings immediate capacity for HRSG engineering and manufacturing.
- Flexibility: Well established in the supply chain ecosystem, Doosan Engineering & Construction HRSG has access to a highly efficient pool of specialized subcontractors to quickly and easily flex up or down GE’s capacity based on customer need.
- Value: A highly cost-competitive player, this team also will drive value across GE’s global manufacturing network with in-house design and manufacturing and significant synergies.
With today’s announcement, Korean Doosan E&C HRSG employees and the facility in Changwon, Korea have been transferred to GE. Transactions in Vietnam are expected to close by Q1 2017 pending regulatory approvals.
About 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.
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.
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Bill (Byung Ryul) Joh