www.doosanheavy.com Mar. 2007 No.

160 Newsletter

Doosan Power Plants

Lighting up the World
- Winning the World’s Largest Power Plant Project
- EPC Project for the UAE Jebel Ali M Combined Cycle Power Plant

The Doosan Heavy Industries & Construction newsletter is intended to serve as a channel of communications for international clients.
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T el : 82-2-3398-1089 Fax : 82-2-2285-5188 http ://www.doosanheavy.com E-mail:[email protected]
 TOP STORY

my. The Jebel Ali ‘M’ Project

Doosan Wins a US$ 1.14 billion Con- involves the construction of
the latest and largest power

tract to Build a Power Plant in Dubai plant in Jebel Ali.

Dubai is expected to experi-

Construction of 1,330MW Jebel Ali ‘M’ Combined Cycle Power Plant ence explosive growth in
power consumption at a
10.6% annual average rate of
increase as a result of rapid re-
al estate development and the
construction of an archipelago
of artificial palm islands. Con-
sequently, the DEWA plans to
invest US $5.4 billion to in-
crease its power generation to
10,000MW by 2012.

Seong Eun Hong, Executive

Vice President of Doosan,
said, “Doosan has gained
widespread recognition for its
construction and technical ca-
The EPC of Jebel Ali M Project, to be completed in 2010(Rehab Combined Cycle Power Plant in Jordan)
pabilities in the Middle East
Doosan has won the largest billion Won) curement and Construction) market, and the recent con-
power plant project ever project involving the design, tract will further raise
awarded to a Korean compa- The Jebel Ali ‘M’ Project, manufacture, installation and Doosan’s stature in the global
ny in the global market. which is the largest project testing of all the power sys- power market. This will put us
ever commissioned by the tems by March 2010. in an advantageous position to
On March 2, Doosan signed DEWA, involves the construc- win the 1,200MW power
an LOA (Letter of Accep- tion of a 1,330MW combined Jebel Ali is located on the plant project scheduled to be
tance) with the DEWA (Dubai cycle power plant. Once com- coast of the Emirate of Dubai. awarded at the end of this
Electricity and Water Authori- pleted, the power plant will A series of power plants has year, as well as other large-
ty) for the construction of the supply electricity to all of been built there since the scale projects to be awarded
Jebel Ali ‘M’ Combined Cy- Dubai. 1980s to meet the increasing by the Dubai Electricity and
cle Power Plant, at a cost of Doosan plans to complete demand for electricity caused Water Authority in the fu-
US $1.14 billion (1 Trillion 70 the EPC (Engineering, Pro- by Dubai’s burgeoning econo- ture.”

Doosan Wins the Largest Power Plant

Contract in Jordan
Doosan signed a US $200 tricity to Jordan’s capital, Am- creasing demand for elec-
million contract to build the man. Once completed, it will tricity, it will put Doosan in
370MW Amman East Com- be the largest power plant in an advantageous position to
bined Cycle Power Plant in Jordan. win upcoming private pro-
Amman, Jordan. Haresh Jais- jects in the country.
inghani, President of AES Asia Doosan plans to complete the
Contract signing ceremony for the Amman East Project
and Middle East, and Dong EPC project involving the de- The government of Jordan
Soo Suh, Executive Vice Presi- sign, manufacture, installation is planning to build new
dent of Doosan participated in and testing of all the power power plants in the in private projects to cope with
the signing. systems by August 2009. 800~1,000MW range worth the growing electrical con-
approximately US $500 mil- sumption (increase of 10.2%
The Amman East Combined Because it is the first IPP (In- lion by 2010. They are also per year), which has been at-
Cycle Power Plant will be built dependent Power Project) to be promoting the privatization of tributed to Jordan’s rapid aver-
in AlmanaKher in the eastern awarded by the Jordanian gov- power companies and partic- age economic growth rate of
part of Jordan to supply elec- ernment to meet the rapidly in- ipation by foreign companies 7%.
 OVERSEAS

headed by Richard Dennis, R&D Di-

Innovation Opens New World rector of Doosan Babcock, paid a visit
to Doosan’s Changwon Headquarters
Doosan Babcock Staff Visit the Doosan Main Office and toured the PR Hall and production
facilities. After tours of the forging,
boiler, and nuclear power factories, they
The management staff and directors of facilities and manufacturing process. were deeply impressed by the size of
Doosan Babcock paid visits to After the tour, Ian Miller said, “The the plant and showed great interest in
Doosan’s main office in January and Doosan Babcock boilers that this facto- the production lines.
February of this year. During their visit, ry will produce in the near future will
they toured Doosan’s factories, research bring synergistic effects to all of us.”
centers, and testing equipment and at- Meeting with Doosan’s Tech-
tended a number of technical confer- The management staff of Doosan nology Research Staff
ences on management system diagnosis Babcock also participated in the 2007
for sustainable growth. Below is an ac- Marketing Strategy Meeting held in
count of their visit. February on Jeju Island, an internation-
ally popular tourist attraction. Along
with the staff of Doosan Babcock, man-
Marketing Strategy Meeting agers from the U.S.-based Doosan Hy-
dro Technology and Romania-based
Ian Miller, CEO of Doosan Babcock, Doosan IMGB also attended the meet-
and his senior management staff came ing.
to Korea to attend the ‘2007 Marketing
Strategy Meeting’ on January 29. They
toured the forging, boiler, Tour of Changwon Plant
Directors of Doosan Babcock in a meeting with Doosan’s
turbine and other main fa- technology research staff
cilities, during which
they paid great attention In the afternoon of February 5, they
to Doosan’s produc- were escorted to the Corporate R&D
tion Institute where they were briefed by C.
John Yoon, Executive Vice President of
Doosan, on the Institute’s current tech-
nology development projects. They
then went to the newly opened Guest
House to acquire a better understanding
Members of Doosan Babcock R&D Team taking a tour of the of power system designs, procurement,
Changwon Plant
estimation and other services provided
A group of five senior researchers by Doosan.
CEO Iain Miller expects synergy with Doosan.

[Interview] Goal of Doosan Babcock: The goal is to in-

crease our overall sales to 600 million pounds.
Richard Dennis Demand is increasing in Europe and Ameri-
ca, so we plan to tap into these markets
R&D Director, Doosan Babcock based on our success in China.

Purpose of the Visit: I came to Korea for the first His impressions of the Changwon Plant:
time for a technology exchange meeting as we be- I spent all day touring this place, and I was
came Doosan Babcock in December last year. Here, surprised by its sheer size. I was particu-
we plan to learn about Doosan’s technology, and we larly impressed by the nuclear power
expect great synergy from the process of technology systems as well as the steam genera-
exchange that will take place henceforth. tors.
 F E AT U R E

Becoming a Global EPC Player

Development History and Prospects for Doosan’s Power Plant Business
Including the Jebel Ali ‘M’ Project, which has been valued at 1 trillion 70 billion won, Doosan has succeeded
in winning a number of other large projects. The development history and future prospects for Doosan’s
thermal power business are outlined below.

on its capabilities in system design

and engineering capabilities, factors
which it will exploit to create high
added value by changing the previous
way of manufacturing and supplying
components, mainly for the domestic
market, under the strategic goal of
“improving the business portfolio.”

One Trillion Won

Project
Doosan first entered the global pow-
er market in 1986 after carrying out a
number of power projects in Korea.
Starting with the manufacturing of
Doosan satisfies its customers with perfect quality. This is made possible by the passion of Doosan’s employees.
boiler pressure vessels for the Hon-
olulu Power Plant ordered by the
Hawaiian Electric Company, Doosan
Besides the Jebel Ali ‘M’ Project, Plant in Thailand, the Daharki Com- began to focus on exporting power
Doosan was also awarded the Oman bined Cycle Power Plant in Pakistan, systems.
BarkaProject, and the Al-Taweelah and the Amman East Project in Jor-
‘A10’ Power Project in the United dan. Since then, Doosan has won several
Arab Emirates at the end of last year. more overseas projects, such as the
This year is no exception, as Doosan Behind the development of thermal construction of India’s Essar Com-
has won a series of large projects in- power technology are Doosan’s ef- bined Cycle Power Plant in 1994 and
cluding the Glow Thermal Power forts to become an EPC player based the Kondapalli Combined Cycle Pow-
 F E AT U R E

er Plant in 1997. However, to gain

competitiveness in the global thermal
power market and create added value,
Doosan needed to first develop its
EPC capabilities so it could design,
manufacture and install all the power
systems of a single project.

Focus on Developing
EPC Capabilities
From 2001 Doosan began to get rid
of its lesser value added businesses
and focus more on the power and de- Doosan is gaining competitiveness in the global thermal power market by expanding its EPC project capabilities(Dangjin Thermal
Power Plant)
salination businesses. In the area of
power generation in particular, struction of three 660MW power plant market for coal-fired thermal power
Doosan hired a number of leading en- units in Sipat, India. While being the plants will reach 1.63 trillion dollars
gineers as well as a CTO (Chief largest power plant ever built in India, by 2030. North America and Europe
Technology Officer) to devel- the power plant units are also the first will account for 410 billion dollars,
op its EPC capabili- to use supercritical boilers with im- while China and OECD Pacific will
ties. proved economic features, safety and account for 75.6 billion dollars and 40
efficiency. billion dollars, respectively.
As a result of Most foreign countries are ordering
such efforts, Doosan also secured a bridgehead to larger power plants nowadays, and an
Doosan was tap into the U.S. and European mar- increasing number of EPC (Engineer-
able to win kets by obtaining proprietary boiler ing, Procurement and Construction)
the Mapna technology after the strategic acquisi- projects involving the design, manu-
tion of Doosan Babcock last year, as facturing, installation and testing of all
well as a business platform on which the power systems are being awarded.
to stand shoulder to shoulder with oth-
er major global companies. Indepen- Doosan plans to win more EPC pro-
dent source technologies for boilers jects in the Middle East and India to
are owned primarily by four compa- become a ‘Major EPC Player’ in the
nies in the world, B&W and Foster global power market. Doosan also
Wheeler of the United States, Alstom continues to pursue a number of
Doosan continues to focus on expanding of France and Doosan Babcock. strategies to diversify its business
its engineering capabilities.
Doosan Babcock owns and licenses portfolio into wind power and IGCC,
the right to use proprietary technolo- and develop proprietary technologies.
Power Project in Iran, which was the gies for the design and engineering of
single largest project in the world, as pulverized coal-fired boilers, which Doosan expects greater synergy with
well as the Rehab Combined Cycle are the most widely used boilers in the the recent acquisition of Doosan Bab-
Power Plant Project in Jordan. Also global thermal power plant market. cock, a global boiler engineering com-
Doosan became No.1 HRSG supplier pany that has supplied boilers to more
in 2003 by winning orders for 64 than 30 countries including the U.S.,
HRSG units. Tapping into the Europe, and China. With many affili-
ated companies in these countries,
In 2004, Doosan established a basis
New Market Doosan Babcock is expected to create
to tap into a new market by winning significant synergy in tapping into the
According to the World Energy Out- U.S., Europe, and China, which are
the Boiler Island EPC project to build
look published annually by the In- the world’s three largest markets for
India’s largest thermal power plant in
ternational Energy Agency, the global coal-fired thermal power plants.
Sipat. The project involves the con-
 N E W S &U P DA T E

President & CEO Nam Doo Lee Taean Unit 7 in

Tours Overseas Construction Sites Commerical Operation
The Taean Thermal Power Plant Unit 7,
for which Doosan supplied the main sys-
tems and testing services on a turnkey
basis, has successfully completed a 240-
hour reliability test and begun commer-
cial operation.

The Taean Unit 7 successfully completed

a 10-day reliability test at the end of Feb-
ruary, and officially began commercial
operation this month after notifying the
Korea Power Exchange on February 28.

President & CEO Nam Doo Lee encouraging employees while taking a tour of its overseas construction sites (second from left) With USC (Ultra Super-Critical) design
technology, Taean Units 7 and 8 feature
Nam Doo Lee, President & CEO bined Cycle Power Plant project that 1.6% higher efficiency than other existing
of Doosan, paid a visit to the con- was awarded to Doosan at the end of power plants, with an output of 550MW
struction sites in the Middle East and last year, and asked the construction for each unit. Both of the stations are
India during the last holiday season staff to do their best to improve quali- highly efficient, environmentally-friendly
to encourage the workers and ask ty and satisfy the customer. He also power stations capable of saving 2.3 bil-
them to create an accident-free work- hosted a meeting on project manage- lion won in fuel each year.
ing environment, stressing the impor- ment at the Desalination R&D Cen-
tance of safety above everything else. ter in Dubai, and ordered the staff to For the Taean Unit 7 project, Doosan car-
share information with other con- ried out everything from design, system
President & CEO Lee went to the struction sites on how the construc- engineering, civil engineering, and elec-
construction site in Shuaiba, Saudi tion site in Sohar was able to achieve tric construction. Since the boiler was
Arabia, shook hands with the con- eight million accident-free hours. first fired up in June of last year, Doosan
struction workers working under the
passed all the tests to the point of com-
scorching sun, and offered them President & CEO Lee called for
mencing commercial operation. With this
some words of encouragement. He yet another project management
project, Doosan has demonstrated its
asked them to establish the same meeting at the New Delhi Branch,
technological capabilities as a power
safety system as the main office in India and went to the construction
plant company.
order to eliminate all occupational site in Sipat to thank the construc-
accidents from overseas construction tion workers for their efforts to
sites this year. He also went to the successfully complete Doosan’s
Riyadh Branch for a briefing on the first overseas EPC project
large ongoing projects in Saudi Ara- despite the terrible weather
bia. conditions.

President & CEO Lee then

toured the Al-Taweelah Com-

A complete view of the Taean Thermal Power Plant

 N E W S &U P DA T E

Construction BG project commissioned by Korea Hydro WETEX 2007

Wins an Award from & Nuclear Power. The consortium of
the Korea Highway
Doosan, Hyundai Engineering & Con- Doosan participated in WETEX 2007,
struction, and SK Engineering & Con-
Corporation
held from March 13 to 15 at the Dubai
struction found itself in an advantageous International Exhibition Center, and
position to win the contract because introduced its power and desalination
Doosan Construction BG won an Doosan is widely recognized for its technologies.
award from the Korea Highway Corpo- capabilities in nuclear power plant engi-
ration after being voted the best compa- neering and construction. Doosan was one of the main sponsors
ny in environmental management for the exhibition hosted by the
for implementing various environ- Dubai Electricity and Water Authori-
mental management initiatives. ty. More than 170 companies and
Doosan Construction BG was rec- government organizations including
ognized for its contribution toward Dubai Municipality and other elec-
creating an environmentally tricity and water authorities in the
friendly construction environment UAE, as well as Siemens, Alstom,
through a number of environmen- Mitsubishi, and Fisia Italimpianti
tal management activities, such as participated in the exhibition.
using environmentally friendly
construction methods and materi- During the exhibition, Doosan rep-
als and minimizing environmental resentatives paid visits to the booths
Kori Nuclear Power Plant
damage by installing environmen- of the major partners and govern-
tal facilities and implementing thorough It is the largest nuclear power project to ment offices related to utility, electricity
maintenance programs at the construc- be awarded in the past four years, so and water to discuss mutual cooperation
tion sites. winning the contract was particularly in the projects currently underway in the
meaningful as all the major Korean con- Middle East and North Africa.
Doosan Construction BG is now struction companies including Daewoo,
regarded as a model company for envi- Daelim, Samsung, and POSCO vied to
ronmentally friendly construction after win the project.
winning the Safety Management Award
in 2004 and the Minister of Environ- The construction of Shin-Kori
ment Award in 2005 and 2006 as a Nuclear Power Plant Units 3 and 4 will
result of implementing sustainable envi- begin in April and be completed in Sep-
ronmental and safety management pro- tember 2013 and September 2014
grams. In particular, the Korea Highway respectively. Once they have been com-
Corporation voted the Best Environ- pleted, they will generate 11 billion
mentally Friendly Site the Doosan con- KWh of electricity a year and contribute
struction site at the Highway Section 2 to stabilizing Korea’s electricity supply Doosan participating in the WETEX 2007

between Iksan and Jangju for two con- in the late 2010s.
secutive years (2005 and 2006).

Photo. "Power &

Shin-Kori Water for Tomorrow",

Nuclear Power Plant Doosan started to

build up the outdoor
Units 3&4 billboard at the down-
town of Dubai and to
advertise its technolo-
gy and brand.
The Doosan Consortium won the Shin-
Kori Nuclear Power Plant Units 3 & 4
 INSIDE

The First Docking of Masan-Changwon Skyway

Doosan Mecatec Delivers a Mega Block to Machang Bridge, the World’s Tallest

It took 392 large trailer wheels to took six months to make and three sible mission. It took a trailer with 392
move the gigantic block at a snail’s months to complete the transmission large tires to move the block 2.5 meters
pace of 2.5 meters per minute. Every- simulation. Since the error rate must be per minute and nearly everyone let out
one was watching in silence. The mega less than 0.1cm, not many companies a sigh of relief every time the trailer
block, weighing 2,100 tons, was finally in the world can transport, let alone moved an inch. It was like a scene from
positioned, representing a turning point make, a mega block of such huge di- a blockbuster movie as the place was
for Doosan Mecatec. mensions. filled with numerous police vehicles
controlling the traffic, crowds of people
On February 23, a mega block made who had come to watch the spectacle,
by Doosan Mecatec was placed on and dozens of reporters.
Machang Bridge, the world’s tallest
bridge, connecting Masan to It will take a combination of private
Changwon. and government funds amounting to
605 billion won to build the Masan
It was the long-awaited ap- Skyway (10.5km), for which the
pearance of the supporting struc- 1.7km-long Machang Bridge is the
ture for the skyway over the central segment of a route connecting
shore of Masan Harbor. In the pro- Masan to Changwon. The bridge is
ject Doosan Mecatec provided three scheduled for completion in June 2008.
blocks weighing a total of 5,630 tons Consisting of one cable-stayed bridge
(126mx138mx126m each), which ac- and two box girder bridges, the
counts for nearly 24% of the total A 2,100-ton bridge block with a length of 141m and width of
Machang Bridge is the central segment
length of Machang Bridge. In particu- 20m, supplied by Doosan Mecatec of the skyway and also the highest
lar, the 2,100-ton mega block, with a bridge in the world, with the distance
length of 141m and a width of 20m, is The transportation and mounting of from the sea surface to the block being
the largest block ever manufactured. It the mega block seemed like an impos- 68 meters.

Doosan Engine Sees an Increase in Sales of Marine Engines

Doosan Engine’s marine engine business has been picking up so far this year.

Doosan Engine signed a contract on jiang Shipyard and its significance lies vices to Chinese shipyards, and has
January 12 with Guangzhou Longxue in the fact that Doosan Engine has suc- played a leading role in winning new
Shipbuilding to supply four 7RTA84T- ceeded in establishing a new connec- clients in the Chinese market.
D engines and another contract on Feb- tion to the highly competitive
ruary 6 with Jiangsu Yangzijiang Ship- Chinese market.
yard to make ten main engines
(6S60MC-C) for 93K bulk carriers. In There is an increasing de-
addition, Doosan Engine also received mand for marine engines in
an order from PT-PAL Shipyard in In- China as both state and pri-
donesia on February 27 for two vately owned shipyards are or-
6S50MC-C engines. dering engines for various
types of ships. Consequently,
With a history going back more than many Korean and Chinese en-
30 years, Jiangsu Yangzijiang Shipyard gine makers are vying to win
is one of the largest shipyards in China. the contracts. So far Doosan
This is the first contract between Engine has been providing
Doosan Engine and, Jiangsu Yangzi- high quality products and ser- Kyu Sang-Cho (left), President & CEO of Doosan Engine, signing a contract