GE completes buy of Doosan’s heat recovery steam generator business

GE Power, a division of General Electric (NYSE: GE), announced Aug. 16 that it has completed the acquisition of the Heat Recovery Steam Generator (HRSG) business of Doosan Engineering & Construction for $250 million.

Originally announced in May, this 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.”

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 its customers, this new acquisition will bring:

  • Capability: The acquisition brings immediate capacity for HRSG engineering and manufacturing.
  • Flexibility:  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 this 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 Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.