Doosan Heavy Industries wins $708 mn seawater desalination plant deal in Saudi Arabia

[Photo by Doosan Heavy Industries & Construction]

A consortium of South Korea¡¯s Doosan Heavy Industries & Construction has received a 780 billion won ($708 million) order from Saudi Arabia to build a seawater desalination plant.

Doosan Heavy Industries said on Monday that it signed a deal to build Yanbu-4 seawater desalination plant in Alrayyis, 260 kilometers north of Jeddah city in Saudi Arabia. The deal was clinched with a consortium of French developer and energy company Engie SA and Saudi Arabian companies Mowah and Nesma.

The Export-Import Bank of Korea will finance 260 billion won in the plant construction project.

The plant is a reverse osmosis type seawater desalination plant that uses reverse osmosis principle to remove contaminants from water by artificially pushing the water under pressure through a membrane to turn it into fresh water.

Doosan Heavy Industries – responsible for engineering, procurement and construction – plans to complete construction by 2023. The facility, after construction, will be capable of providing 450,000 tons of fresh water per day to Alrayyis in western Saudi Arabia which is sufficient for use by 1.5 million people.

Park In-won, head of plant EPC BG at Doosan Heavy Industries, said that the company has once again been acknowledged of its technology in the Middle East where reverse osmosis type seawater desalination plant industry has been expanding.

The company plans to aggressively move into the industry in the Middle East whose value is projected to reach $2.8 billion by 2025.

Doosan Heavy Industries, meanwhile, has clinched a number of seawater desalination plant projects in recent years, including Doha-1 project in Kuwait in 2016, Shuaibah project in Saudi Arabia in 2017, and Sharqiyah project in Oman in 2018.

Shares of Doosan Heavy Industries finished 0.38 percent higher at 13,300 won on Tuesday.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]