HD KSOE to acquire Doosan subsidiary for KRW290b

HD Korea Shipbuilding and Offshore Engineering (HD KSOE) has signed a stock purchase agreement to acquire Doosan Energy’s Vietnamese subsidiary, Doosan Vina. The total transaction amount for the acquisition of all of Doosan Vina's stock is approximately KRW290 billion ($210 million).

Doosan Vina, which was established in 2006, is located in central Vietnam and has been producing thermal power plant boilers, port cranes, and LNG plant modules. HD KSOE stated that it plans to continue the existing operations at the facility while also utilising it as a manufacturing base for standalone tanks and as a hub for its port crane business in Asia.

The company noted that standalone tanks are key components for eco-friendly vessels such as LNG-powered ships, LPG carriers, and ammonia carriers, and that demand for these tanks is increasing due to the strengthening of International Maritime Organisation (IMO) environmental regulations.

A company representative stated that the deal was made possible by an alignment of interests between the two companies and that the expanded production capacity for equipment will allow the group to maximise profitability by expanding its lineup of vessels.