HD KSOE acquires Doosan Vina at W290b

HD Korea Shipbuilding & Offshore Engineering, an intermediary holding firm of Korean shipbuilding conglomerate HD Hyundai, said Wednesday that it has signed a deal with Doosan Enerbility to acquire the latter’s Vietnamese company, Doosan Vina, in order to expand its lineup of eco-friendly vessels.

According to HD KSOE, it agreed to buy out Doosan Enerbility’s 100 percent stake in Doosan Vina at a price of 290 billion won ($207 million).

Doosan Enerbility said it will utilize the 290 billion won it secures from the deal to expand facilities in core businesses, such as small modular reactors and gas turbines, which are seeing rapid growth in demand amid the increasing need for energy and carbon reduction across the globe.

Doosan Vina, which was established in 2006 in the Dung Quat Economic Zone of Quang Ngai Province, Central Vietnam, has manufactured boilers for thermal power plants, port cranes and modules for liquefied natural gas plants.

HD KSOE plans to carry on the existing business of Doosan Vina while utilizing the newly acquired site as a regional foothold to build independent tanks and port cranes for the Asian region. An independent tank is a key component in eco-friendly vessels such as LNG-fueled vessels, liquefied petroleum gas carriers, ammonia carriers and liquefied carbon dioxide carriers.

“This deal was able to be finalized as it fulfills the interests of both companies, backed by the government’s cooperation and support,” said an HD KSOE official. “As we have expanded our production capacity of eco-friendly equipment, we plan to maximize profitability by bolstering our lineup of globally competitive eco-friendly vessels."