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Doosan Heavy Industries & Construction set to expand gas turbine service business

2019. 10. 16

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- DHIC wins gas turbine maintenance project for Ulsan Oil Fired & C.C. Power Complex
- Company sets goal of KRW 3 trillion in sales by 2026 through synergy of gas turbine design/manufacturing capability and service capability

  • □ Doosan Heavy Industries & Construction (DHIC) is accelerating the expansion of its gas turbine service business.

  • □ DHIC announced on October 16 that it had won a contract to maintain the exhaust cylinders of three gas turbines installed at Units 4 to 6 of the Ulsan Oil Fired & C.C Power Complex. An exhaust cylinder is directly connected to the outlet of the gas turbine, making it vulnerable to heavy damage after a long period of operation as it is exposed to a high temperature of about 6000C.

  • □ The order is a follow-up to the successful maintenance of the gas turbine exhaust cylinder of Unit 3 of the same complex.

  • □ Until now the market for gas turbine services, including exhaust cylinder maintenance, has been dominated by overseas companies based in the United States, Germany, and Japan. DHIC is the first Korean company to receive an order for exhaust cylinder maintenance service.

  • □ The plant operator, Korea East-West Power Co. Ltd (EWP), was also helpful in DHIC’s winning the order. EWP visited DTS (Doosan Turbomachinery Services), DHIC’s US-based subsidiary for gas turbine services, and showed a strong commitment to localization of the gas turbine business. Including the latest order, DHIC has received gas turbine service orders amounting to more than KRW 10 billion for gas turbine maintenance and parts purchase from EWP.

  • □ Korea’s power plants have a combined total of 149 gas turbines, all of which have been imported for a total cost of about KRW 12.3 trillion (purchasing cost: KRW 8.1 trillion; service cost including maintenance: KRW 4.2 trillion). Given the announcement of the 8th Master Plan for Power Supply and Demand announced at the end of 2017, the obsolescence of current cogeneration plants, and the re-powering of coal-fired power plants, the total capacity of cogeneration plants requiring gas turbines to be constructed by 2030 is expected to exceed 18 GW.

  • □ “The gas turbine service business is a high value-added sector that can generate income on a continuous basis. As such, we plan to develop this business with the sales goal of KRW 3 trillion by 2026, by exploiting the synergy between our gas turbine design/manufacturing capability and our service capability,” declared Jinwon Mok, CEO of DHIC’s Power Service BG.

  • □ Last month, DHIC held the final assembly ceremony of the initial gas turbine product for 270 MW power generation developed as part of a national project sponsored by the Ministry of Trade, Industry and Energy and the Korea Institute of Energy Technology Evaluation and Planning. The company plans to carry out a field demonstration at the Combined Cycle Power Complex Division of Korea Western Power, following on from the in-house performance test conducted earlier. <End>