Doosan Group Chairman Park Jung-won and Wells Fargo’s Equipment Finance Group President William Mayer shake hands after signing an agreement to establish a strategic alliance in the fuel cell business on Wednesday (local time) at Park Hyatt Hotel in Washington D.C. [photo by Doosan Group]
South Korea’s Doosan Group is seeking to expand its power and energy business through bigger U.S. presence.
The group said on Thursday that its two affiliates - Doosan Heavy Industries & Construction Co. and Doosan Corp.- separately signed contracts related to the business with U.S. firms during the group chairman Park Jung-won’s visit to the country as a business delegation accompanying Korean president Moon Jae-in on his first state visit.
Doosan Heavy’s U.S. operation Doosan Heavy Industries America (DHIA) signed a memorandum of understanding on Wednesday (local time) to acquire U.S. gas turbine service provider ACT for an undisclosed amount.
The Huston-based ACT offers repair service for core components of gas turbines including combustors, turbines and rotors.
The takeover is expected to lay the foundation for the company to enter the U.S. gas turbine market as it can obtain ACT’s skilled manpower, equipments and business know-how through the deal.
“The deal would help us broaden our presence in the global gas turbine service market that is expected to grow to 210 gigawatts by 2030,” said the company.
The nation’s leading power equipment maker also plans to utilize ACT’s expertise and capability for the national project it has been conducting with the Korean government to develop original technology for large-sized gas turbines. The technology is only possessed by three companies in the world including General Electric (GE), Siemens and Mitsubishi Hitachi Power Systems (MHPS). The company aims to complete the project by 2019.
Separately, Doosan Group’s holding company Doosan Corp. signed an agreement to form a strategic alliance with Wells Fargo to bolster its fuel cell business on Wednesday.
Under the agreement, Wells Fargo will buy Doosan’s fuel cells and lease them to the power purchase agreement (PPA) contractors.
By Moon Ji-woong
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]