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Doosan Heavy sews up India power plant orders worth $2.3bn
Doosan Heavy Industries & Construction shares rose slightly on Monday, after the South Korean company announced it had landed 2.8 trillion won ($2.3 billion) worth of thermal power plant orders from an Indian state government.
Doosan Heavy shares closed at 28,150 won apiece, up 0.54%. With South Korean exporters catching a tailwind created by a weak home currency, the stock is riding a three-day winning streak that started Thursday and is nearing the one-year high of 28,700 logged on Nov. 14.
The company said affiliate Doosan Power Systems India secured orders for two plants from the government of Uttar Pradesh in northern India. The Obra-C and Jawaharpur plants will each have two 660-megawatt generators, according to Doosan.
“We could strike the deals thanks to our aggressive localization strategy, paying attention to the growth potential of the power market in India,” said Kim Heon-tak, head of the engineering, procurement and construction business group at Doosan.
Kim added that the orders would accelerate Doosan’s expansion in the Indian thermal power market, which he said is expected to reach an annual average of 18 gigawatts by 2020.
The fresh orders come two months after Doosan snagged 1 trillion won worth of power plant-related business from Saudi Arabia and 950 billion won from the Philippines. Doosan said its orders have topped 9 trillion won this year, with 5 trillion won in the fourth quarter alone.
Looking at the broader South Korean market, the sliding won is buoying exporters such as Samsung Electronics, SK Hynix and LG Display — all three of which expect their sales and profits to increase in the fourth quarter.
Winners and losers
The won hit 1,203 to the dollar on Friday, its weakest level in nine months. The currency has slipped by 9.23% since the end of September, from 1,101.3.
Market watchers say Samsung’s quarterly operating profit increases by 500 billion won every time the currency weakens by 100. SK Hynix’s sales climb about 100 billion won when that happens. Dick Butkus Authentic Jersey
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