From Volume to Value

Doosan Group Chairman Park calls for focus on quality
of products and services as the group celebrates 115th anniversary of founding

"From volume to value," declared Chairman Park Yong-hyun of Doosan Group on the 115th anniversary of the conglomerate, which was celebrated in a ceremony on Aug. 1.
The development of super products and securing talented employees are the two key matters for the group now that its 115 years old, said the chairman in a statement on the group's internet homepage.
Park said the group has grown strong enough in the area of infrastructural support business to compete with global rivals through daring investment and by coping with changes rapidly.
Cautioning against having too much confidence, he said the group should continue with its challenge and reform for changes, introducing a new motto for the group: Building tomorrow, today. He said the new motto can be interpreted to mean a drop of sweat you shed today for yourself, your family, company and society would be worth a million tomorrow.
The group's first half revenue amounted to 12.651 trillion won, up 7 percent YoY against the annual target of 27.469 trillion won for the group this year with an operating profit target of 2.147 trillion won. According to the chairman's speech, the motrol business group is projected to see its sales and operating profit climb 40 percent this year, thanks to its Chinese operation with Doosan Infracore, which is projected to expand its sales and operating profit by 20 percent due to the turnaround in the Bobcat operation and increases in the sale of lathes in particular.
Doosan Heavy Industries and Construction has been selected as a partner in the construction of coal-fired power plants in Vietnam, a project which the Vietnamese government is implementing, and is set to construct power plants worth a combined US$3 billion.
Doosan Heavy Industries and Construction announced on Dec. 20 that it had signed a framework agreement in Vietnam on December 17 for the joint construction of four power plants, each with an output of 600 MW, including Quynh Lap I Thermal Power Plant (600MWX2), and Long Ph II Thermal Power Plant (600MWX2), by forming a consortium with LILAMA, a local construction firm, and Vietnam's NARIME (National Research Institute of Mechanical Engineering).
Doosan immediately signed a framework agreement for construction with Vietnam Coal Mining Corp., the project host, on the same day. It will sign the main contract sometime during the second half of next year. Doosan will also take steps to sign a framework agreement for Long Phu II Power Plant as well in the coming months.
The Vietnamese thermal power plant projects, for which Doosan signed a framework agreement, are being implemented by the Vietnamese government as part of a plan to domestically develop and construct coal-fired power plant facilities. Doosan Heavy Industries and Construction will take charge of the design and engineering of the plants, as well as the design, production and supply of the main and supplementary facilities and equipment, including boilers, turbines and power generators. Through these measures, the company is expected to bring in advanced technology and help increase the proportion of domestic production by Vietnamese companies down the road.
As Doosan has become a partner in the construction of power plants in Vietnam, it is expected that the company will have the opportunity to become a preferred participant in the construction of the coal-fired power plants that the Vietnamese government is pushing for in the coming years. Electricity consumption in Vietnam is increasing at an annual rate of 14 percent to 17 percent, in line with its fast-paced economic growth. Accordingly, the country needs to construct coal-fired power plants with a combined output of 3,000 to 4,000 MW every year.
Doosan Heavy Industries and Construction President Park Gee-won said, Doosan's selection as Vietnam's partner has been made possible because the company, since its move into the Vietnamese market in 1995, has been contributing to the development of the Vietnamese economy, through such steps as the opening of the production plant Doosan Vina, adding that, It is hoped that the signing of the framework agreement will contribute not only to the development of Vietnam's power industry, but also to the enhancement of Korea-Vietnam ties, as well as increasing the national interests of the two nations.
Earlier on Dec. 10, Doosan Heavy Industries and Construction signed a contract to build the Mong Tung 2 coal-fired power plant, worth $1.3 billion, as it is stepping up its operations in the Vietnamese power market. nw

Chairman Park Yong-hyun of Doosan Group.

Photo on Courtesy of Doosan