Doosan Enerbility Localizes Three Core Competencies in Power Generation Gas Turbine Service Business

Contract for Replacement of 8 Gas Turbine Casings with Korea Southern Power Co.

In September 2019, Doosan Enerbility employees are installing rotor blades into the casing for the final assembly of the first gas turbine unit. Photo by Doosan Enerbility

Doosan Enerbility is accelerating its entry into the '7F Gas Turbine' service market, which is expected to exceed 1 trillion KRW annually, by partnering with domestic small and medium-sized suppliers.

On the 12th, Doosan Enerbility announced that it had signed a contract with Korea Southern Power to replace the casings of eight gas turbines at the Shin-Incheon Combined Cycle Power Plant. Following its previous supply of rotors and high-temperature components, Doosan Enerbility secured the casing replacement contract, thereby gaining recognition for all three core competencies required in the gas turbine service business.

The casing serves as the cover for gas turbines operating under high temperature, high pressure, and high speed. Both manufacturing and installation require advanced technical skills, which have traditionally been performed mainly by original gas turbine manufacturers overseas. By winning this large-scale casing replacement contract through competitive bidding, Doosan Enerbility can further accelerate its gas turbine service business. The gas turbine service business is a recurring business that guarantees stable long-term sales and base profits, contributing to the stable operation of the company. Recurring business refers to operations that continuously generate sales and profits even after the initial product sale.

Doosan Enerbility plans to fully localize the related technologies by carrying out the entire process of design, material manufacturing and processing, and installation for this casing replacement project with 13 domestic small and medium-sized enterprises. The company has already localized core gas turbine service technologies such as rotor life extension and high-temperature component supply in cooperation with 17 domestic SMEs.

The model Doosan Enerbility secured this time is GE's 7F (150 MW class) gas turbine product. More than 900 units of the 7F gas turbine have been supplied worldwide, with over 650 units operating in the United States. Doosan Enerbility, which owns DTS (Doosan Turbomachinery Services), a gas turbine service specialized subsidiary in Houston, USA, plans to utilize DTS to enter the global gas turbine service market, including the US, in collaboration with domestic SMEs.

Son Seung-woo, Head of Power Service BG at Doosan Enerbility, said, "This contract signifies the 100% localization of core technologies in the gas turbine service business together with domestic small and medium-sized partners. Based on domestic achievements, we will actively pursue entry into the global 7F gas turbine service market, including the US, which is expected to exceed 1 trillion KRW annually, together with domestic companies."

A representative of a domestic small and medium-sized partner participating in this casing replacement project said, "Thanks to Korea Southern Power's determination to localize gas turbine services, domestic SMEs have gained an opportunity to enhance their technological capabilities. As a member of the Korean gas turbine ecosystem, we will do our best to complete the project with a strong sense of responsibility."