In a significant move to bolster its production of eco-friendly vessels, HD Korea Shipbuilding & Offshore Engineering Co. (HD KSOE) has struck a deal to acquire a full stake in Doosan Vina, the Vietnamese branch of Doosan Enerbility Co., for 290 billion won ($207.5 million). This acquisition marks a strategic shift for HD KSOE as it aims to enhance its capacities and expand its footprint in the green maritime industry.
The Acquisition and Its Implications
This acquisition grants HD KSOE control over Doosan Vina’s expansive 1 million-square-meter industrial complex, located in Vietnam’s Dung Quat Economic Zone in Quang Ngai Province. Established in 2006, Doosan Vina’s facility is notable for manufacturing coal thermal power plant boilers, port cranes, and equipment for desalination plants, along with modules for liquefied natural gas (LNG) projects. Much of its output has found markets mainly in Southeast Asia and the Middle East, and the complex boasts its own port, enhancing its logistical capabilities.
Financial Performance
Looking ahead, the financial prospects for Doosan Vina appear promising. In 2024, the unit is projected to generate 457.3 billion won in revenue, complemented by an operating profit of 31.6 billion won. This financial backbone offers a solid foundation for HD KSOE’s plans for growth and diversification in the maritime sector.
A Hub for Innovation
With the acquisition, HD KSOE, which operates as an intermediate shipbuilding holding firm under HD Hyundai Co., has ambitious plans to transform Doosan Vina’s complex into a regional hub for independent cargo tanks and port cranes in Asia. These cargo tanks are pivotal in transporting LNG and other specialized gases such as liquefied petroleum gas (LPG), ammonia, and hydrogen. The demand for such tanks is expected to increase in light of stricter regulations imposed by the International Maritime Organization regarding marine pollution.
Expanding Eco-Friendly Production
An HD KSOE representative stated, “With our expanded capacity to produce eco-friendly equipment, we will broaden our lineup of globally competitive green vessels and work to maximize profitability.” This commitment to environmentally sustainable technologies aligns with global trends, focusing on reducing carbon emissions and promoting clean energy solutions.
Robust Financial Position
In the second quarter, HD KSOE reported an impressive operating profit of 953.6 billion won, drawn from sales reaching 7.43 trillion won. This robust financial performance underscores the company’s strong position in the maritime industry, where it controls HD Hyundai Heavy Industries Co., recognized as the world’s largest shipbuilder, along with various other shipbuilding, engine, and energy units.
Strategic Shift for Doosan Enerbility
For Doosan Enerbility, Korea’s leading manufacturer of gas turbines, this sale signifies a deliberate pivot away from coal boiler production—a sector facing challenges due to tightening environmental regulations worldwide. The company plans to reinvest the proceeds from the sale into the development of small modular reactors (SMR) and other clean energy technologies, reflecting a strategic commitment to expanding its efforts in the green energy landscape.
Looking Ahead
As HD KSOE gears up for this transformative chapter, the acquisition of Doosan Vina not only enhances its manufacturing capabilities but also positions it as a key player in the evolving landscape of eco-friendly maritime solutions. This strategic move is expected to yield dividends, not just in profitability but also in contributing to a more sustainable maritime industry.