Doosan buys Skoda Power

Doosan Heavy Industries and Construction has acquired Czech power plant equipment maker Škoda Power. The deal is expected to be completed in the fourth quarter of this year.

The acquisition means Doosan now holds the rights to proprietary turbine technologies used in power plants.

A statement from Doosan said the acquisition will add to Doosan's capabilities in the core technologies of boilers, turbines and generators - the three key components of modern power plants - positioning the company as a leader in the global power plant equipment industry.

Doosan Heavy Industries and Construction president and CEO Geewon Park said, "We expect the Škoda Power acquisition to generate an additional US$ 4 billion in annual revenue in 2020. In the coming years, Škoda Power and Doosan Babcock will spearhead our progressive expansion in Europe, the US and other developed markets.

"Working in partnership with Škoda Power, Doosan aims to grow turbine genset revenues as it sets its sights on the global turbine market and to becoming one of the industry's top-tier suppliers," he said.

Following news of the acquisition, Doosan confirmed it plans to set up Doosan Power Systems (DPS) to oversee Škoda Power and Doosan Babcock as its power solutions business in Europe and the Americas.