RIYADH, 3 December 2006 — In a move to consolidate its thermal power plant operations and to win more projects in this sector across the Middle East, South Korea’s Doosan Heavy Industries & Construction Company has acquired the UK-based Mitsui Babcock Energy Ltd. for $169.5 million. Doosan, which has a full-fledged operation in the Kingdom with its regional headquarters in Riyadh, is currently bidding for several projects.
“The acquisition will help us secure technologies for oil-fired boiler design and engineering as well as related advanced technology,” said Ha Yong Jeon, Doosan’s deputy general manager for Saudi operations. Jeon said that the company will be able to compete more effectively locally and regionally with other leading companies following the acquisition of this advanced technology abroad.
Doosan, which has implemented some prestigious multimillion riyals projects in Saudi Arabia, is currently vying for other projects in the Kingdom and around the Middle East. Jeon noted that “Doosan’s acquisition is part of the company’s ongoing efforts to pursue global strategies that will make this South Korean company a recognized technology leader not only in this part of the world, rather all over the world.”
“With the acquisition of Mitsui Babcock, Doosan will gain ownership of core technologies for thermal power plant boilers that will allow it to become a more complete boiler manufacturer,” explained the Doosan deputy chief. This will, in fact, strengthen the diversification of Doosan’s overseas operations, which are now concentrated in the Middle East and Asia, mainly in the Gulf states.
Currently, only four companies in the world own independent source technologies for boilers-B & W and Foster Wheeler of the US, Alstom of France and Mitsui Babcock. Babcock, which was established by B & W in Britain in 1891 and was taken over by Mitsui in 1995. Based in West Sussex, Mitsui Babcock is one of the global leaders in the field of power plant boiler design and engineering.
