Korea’s Doosan looks for $3.8bn in orders

25 Feb 2002 – Doosan Heavy Industries (formerly known as Hanjung or Korea Heavy Industries & Construction Co., Ltd.) said yesterday that it is targeting 5.1 tn won ($3.8bn) in order receipts (41 per cent increase from last year), 2.95 tn won in sales (20 per cent rise) and 212.2 bn won in operating profits (244 per cent rise) this year, reports the Korea Herald.

The industrial construction company, which specializes in power plants, received orders worth 3.63 tn won (9.5 per cent increase from 2000) and posted sales of 2.47 tn won (2.5 per cent rise) last year, the first year of its privatization. Despite special losses, including severance pay worth 38 bn won disbursed to about 1000 employees who applied for early retirement, Doosan posted a net profit of 24.8 bn won last year, switching to the black from a net loss of 24.8 bn won in 2000.

“We received 60 per cent of our total orders from overseas, including freshwater facilities worth 1 tn won from the United Arab Emirates and a contract from GE to build power generation facilities,” a Doosan official said. “We expect to achieve our goal this year, considering that we have backlog orders worth eight tn won and that we will carry out domestic power generation projects full-scale starting this year.

“The company aims to accomplish an annual 30 per cent growth in operating profits from 2004 by strengthening its business in manufacturing core equipment for domestic nuclear power plants by 2006 and expanding its overseas heat recovery steam generator (HRSG) business. As a result of its active restructuring efforts such as manpower readjustment and sale of its headquarters in Gangnam, Doosan was able to reduce its employees to 6289 as of the end of January from 7626 workers in January 2001 and its net liability to 290 bn won as of the end of last year from 585 bn won at the end of 2000.

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