General Electric to buy HRSG systems from Doosan for $250 million
The unit is a key component for GE’s combined-cycle power plant. However, the deal is still subjected to approval from regulatory authorities and Doosan shareholders and is expected to materialize in the second half of this year.
The Doosan power plant is already a supplier to General Electric for its HRGS systems. After the acquisition, the conglomerate is expected to align it into Alstom’s HRSG system unit, helping reduce costs, increase efficiency and service revenues for the company.
The heat recovery steam generators are large systems that take exhaust heat from gas generators and use it to produce additional power.
In addition, the Doosan plant is expected to increase General Electric’s current HRGS engineering and manufacturing capacity, helping it align with the increasing demand for HRGS.
Under the company’s strategic overhaul plan of shifting its entire focus back to its industrial roots, General Electric plans to move away from selling gas-powered turbines to full gas-powered plants.
The conglomerate also expects the acquisition to boost the amount of equipment it sells, as currently the Doosan HRGS system generates roughly $200 million in revenues annually. ■