Doosan Heavy Industries & Construction announced on February 2 that it had launched a new Service Business Group (hereinafter, “BG”) to expand its integrated power services, and quickly respond to global power market trends and secure new growth engines.
The power services business is a high value-added business that has huge growth prospects compared to the new build business which is more sensitive to economic conditions. Doosan’s integrated power services, which encompass upgrade, repair, maintenance and fuel conversion services, is expected to help enhance plant reliability and efficiency for clients.
Generally, the demand for services at power plants with a combined power output of 1000MW (1GW) is valued at an estimated 100 billion won per year, with the power plants currently operating around the world generating a total output of 6500GW.
Doosan said that it established the Service BG in order to promote the power service sector as a core business that will spearhead its future growth as the power service business is continuously growing worldwide due to the recent tightening environmental regulations, including the reduction of carbon dioxide emissions and fine particles.
Doosan has transferred its talents and organizations related with the plant services including sales, engineering and project management to the Service BG, and has appointed Executive Vice President Jin-won Mok, who has far-reaching experience in corporate strategy and overseas sales, as the CEO of the newly established BG.
Notably, with Doosan Babcock, a UK-based subsidiary that has over 30 years of power service-related experience and know-how, being a key business unit, there are high expectations that the Service BG will be able to create great synergy.
Going forward, Doosan plans to expand its business portfolio to include a broad range of power services, such as asset management, digital solutions, operation & maintenance (O&M) and renovation & modernization (R&M), as it continuously seeks to secure a competitive edge and deliver the solutions in demand by its clients.
Since the power service business can generate continuous recurring businesses, the new Service BG is expected to secure a more stable stream of revenue compared to the New Build business.
“We see huge growth potential because with our existing power service solutions, we are ready to serve a 3,000GW power market,” said Service BG CEO Jin-won Mok. “If we succeed in securing the capabilities and a competitive edge by specializing in the service business in a short period of time, we will grow to become a ‘Total Solution Provider’ that offers comprehensive solutions in the power service area.”
With the establishment of the Service BG, Doosan is now composed of seven BGs that include EPC BG, Water BG, Nuclear BG, Turbine BG, Boiler BG, and Casting & Forging BG.