Doosan Enerbility inks parts replacement contract with Korea Southern Power

Employees at Doosan Enerbility are installing rotor blades into the casing for the final assembly of the first gas turbine unit. (Doosan Enerbility)

Doosan Enerbility Co., a power plant equipment manufacturer under South Korea’s Doosan Group, signed a contract with Korea Southern Power Co. to replace the casings of eight gas turbines at the public utility company’s Shinincheon Combined Cycle Power Station, the company said on Tuesday.

Casings are the components that cover gas turbines operating under high temperatures, pressure, and speed.

The gas turbine service business can continue generating revenue and profits even after the initial sale, contributing to business stability.

The latest contract will allow Doosan Enerbility to have secured orders for the three main segments essential to the gas turbine service business: rotors, high-temperature parts, and casings.

The development is expected to accelerate the company’s entry into the global gas turbine service market, which is projected to reach more than 1 trillion won ($ 710 million) annually.

Doosan Enerbility signed a contract with Korea Southern Power in 2022 to extend the lifespan of two gas turbine rotors. Six more followed this year.

Starting next year, the company will also supply high-temperature components to the Busan Combined Cycle Power Station.

In particular, it is working on localizing the gas turbine service industry, which has traditionally relied on overseas companies.

Casing manufacturing and installation requires advanced technical expertise. It has been mainly performed by overseas original gas turbine manufacturers, according to the company.

Doosan Enerbility plans to collaborate with 13 domestic small- and medium-sized enterprises (SMEs) to localize the entire process for this casing replacement project, including design, material production, machining, and installation.

The company has already localized technologies related to rotors and high-temperature components in cooperation with 17 domestic SMEs.