GE Power Picks Up Doosan’s HRSG Business Unit

GE’s shopping spree in the power sector continued on May 10 as GE Power signed an agreement with Doosan Engineering & Construction to acquire the Korean firm’s heat recovery steam generator (HRSG) business for $250 million.

According to GE, the acquisition will allow it to expand its offerings for combined cycle power plant solutions. The move comes on the heels of GE’s blockbuster purchase of Alstom’s gas turbine unit last year, and its acquisition of Metem Corp., a U.S.-based provider of precision cooling hole-manufacturing technologies, in April.

Doosan has had business relationships with GE and Alstom going back decades. The firm’s HRSG unit will be integrated into GE Power’s Gas Power Systems business alongside Alstom’s legacy HRSG business.

“With the Alstom acquisition, we are now offering full power plant solutions and seeing an even greater demand for our highest-efficiency HA heavy-duty gas turbine plants,” said Steve Bolze, president and CEO of GE Power. “The Doosan Engineering & Construction HRSG acquisition will help us meet our forecasted growth and better manage costs by increasing our global manufacturing capacity and further complementing our existing HRSG technology. We’re also gaining a talent pool that is one of the best in the world.”

The acquisitions have expanded GE’s already large footprint in the gas-fired power sector to give the company a majority of worldwide market share. Industry observers estimate the company took about 51% of gas turbine orders in 2015 by total capacity. The company said it is seeing HRSG demand growing well above historical patterns.

—Thomas W. Overton is a POWER associate editor (@thomas_overton, @POWERmagazine).