All of Doosan Group’s affiliates were profitable last year, despite a general downturn sweeping the world.
The group has been trying to maintain its upward trajectory and seek new growth engines with a solid financial structural base. Doosan Heavy Industries and Construction, for one, has solidified its position as a global mover in EPC based on its technological prowess.
The company kicked off the new year by securing an order for a thermal power construction project in Indonesia in February, and ended 2016 by winning a huge order to build two thermal power plants in the Uttar Pradesh State in northern India worth 2.8 trillion won.
The heavy industrial company ended 2016 by winning an order in Saudi Arabia, which put it over the 9 trillion won milestone in total project orders overseas.
The company also acquired One Energy System, a source for basic software technology in the United States, to solidify its technological prowess in the industry.
Doosan Bobcat, which last year consummated its first IPO successfully, stands to benefit from the Trump presidency in the U.S. The company’s a large catalog of construction technology will put it in a position to profit from the Trump administration’s goal of investing in huge infrastructural projects across the U.S.
Doosan plans to focus on R&D activities to develop high-tech so that it will be able to lead the world in the area. Doosan Infracore set up a facility in Inchoen as a base for its 1,000 R&D personnel.
Doosan Bobcat, in fact, opened two R&D centers in North Dakota in 2014 to focus on the development of new construction equipment technologies. They’re working on technology including computer simulations, among others, to reduce the time it takes to bring a new technology to market.
Doosan Group carried out a personnel reshuffle at Doosan Bobcat (in the areas of power generation equipment production and boiler technology) and Doosan Scoda Power (in the areas of turbines and power generation technology).
Chairman Park Jung-won aims to field a winning team to take advantage of opportunities in the new year.
About 30 million shares owned by its shareholders, including Doosan Infracore Co. and Doosan Engine Co., will be sold between 29,000 won and 33,000 won, the company said in a regulatory filing. Listing is due Nov. 18. The company had earlier proposed to raise as much as 2.45 trillion won, selling 49 million shares at 41,000 won to 50,000 won apiece.
Doosan Bobcat withdrew its original offer, which would have been the country’s biggest IPO in more than six years, after failing to lure investor interest. The benchmark Kospi index has moved in a narrow band in the past five years, making investors wary of valuations of companies listing on the market. While the South Korean firm cut the size, TI Fluid Systems Ltd., the automotive company owned by Bain Capital, scrapped its planned London IPO amid weak reception for such deals.
The share sale by Doosan Bobcat will help raise as much as 450 billion won for the Doosan Group, according to the statement. The shares that the group units aren’t selling in the IPO could be used as a source of financing after Doosan Bobcat’s listing, Doosan Infracore said in an e-mail, without elaborating.
A view of excavators lined up at a Doosan Infracore plant in Gunsan, North Jeolla Province.(Photos: Doosan Group)