Bloomberg News

Doosan Heavy Wins $1.3 Billion of India Orders for Boilers

February 20, 2012

(Updates with closing share price in fourth paragraph.)

Feb. 20 (Bloomberg) -- Doosan Heavy Industries & Construction Co. announced 1.5 trillion won ($1.3 billion) of orders to build five boilers for Indian power plants, the first contracts won by a unit it acquired in the country last year.

The 800-megawatt boilers will be installed at NTPC Ltd. facilities by 2016, Changwon, South Korea-based Doosan said in an e-mailed statement today. Three will be used at the Kudgi power plant in Karnataka state in India’s southwest, and two in the Lara facility in Chhattisgarh, central India, it said.

India, which is adding electricity-generating capacity to support economic growth, may build 25 gigawatts of plants a year until 2020 that will generate $25 billion of orders industrywide, Doosan Heavy said today. Doosan Heavy, South Korea’s biggest power-equipment maker, agreed to buy Indian boiler-maker AE&E Chennai Works for 20.5 million euros ($27 million) in January 2011.

Doosan Heavy rose 1.7 percent to 70,600 won in Seoul trading. The stock has advanced 8 percent this year, compared with an 11 percent gain for South Korea’s Kospi index.

--Editors: Neil Denslow, Lena Lee

To contact the reporter on this story: Sangim Han in Seoul at sihan@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net


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