[Stones and Stories] 'Saudi Contract' Doosan Enerbility Surges on Hopes for Summit Benefits

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Doosan Enerbility is showing a strong gain of over 5% during trading on the 12th following news that a summit between South Korea and Saudi Arabia will be held soon.

Doosan Enerbility's stock price surged to 21,700 KRW, up 6.90% from the previous day during intraday trading. Afterwards, due to profit-taking selling, as of 10:44 AM, the stock was trading at 21,300 KRW, down 4.93% from the previous day.

The company is an affiliate of the Doosan Group engaged in power generation facilities including nuclear, thermal, and wind power. Recently, it announced plans to build a seawater desalination plant worth 840 billion KRW in Saudi Arabia, which is expected to benefit from the Korea-Saudi summit.

This project involves constructing a reverse osmosis (RO) seawater desalination plant approximately 110 km south of Jeddah. RO desalination uses a technology similar to water purifiers, applying artificial pressure to seawater to pass through a semipermeable membrane to remove salt.

Doosan Enerbility also plans to build a 60 MW solar power plant to reduce electricity consumption during freshwater production.

Earlier, reports emerged that the government is pushing to hold a summit between South Korea and Saudi Arabia around November.

At this summit, the $650 trillion KRW Neom City project, the world's largest construction project underway in Saudi Arabia, and local nuclear power plant contract projects are expected to be key agenda items.