HD Korea Shipbuilding & Offshore Engineering (HD KSOE) Co. said Wednesday it has signed a 290 billion-won (US$207 million) agreement to purchase Doosan Enerbility Co.'s Vietnam subsidiary, according to Yonhap.
Under the deal, HD KSOE will take over all shares of Doosan Vina owned by Doosan Enerbility, the South Korean shipbuilder said in a regulatory filing.
Established in 2006, Doosan Vina operates a manufacturing complex about 120 kilometers south of Da Nang in central Vietnam and has produced thermal power plant boilers, port cranes and liquefied natural gas (LNG) plant modules.
HD KSOE said it plans to maintain the subsidiary's existing business while transforming the site into a production base for independent cargo tanks and a regional hub for the company's port crane business in Asia.
Independent tanks are key components used in LNG-fueled ships, liquefied petroleum gas (LPG) carriers, ammonia carriers and liquefied carbon dioxide carriers.
Demand for the products is rising due to strengthened environmental regulations by the International Maritime Organization.
HD Korea Shipbuilding & Offshore Engineering Co. (HD KSOE): HD KSOE is a South Korean corporation that functions as an intermediate holding company within HD Hyundai. It oversees the group’s shipbuilding operations and controls several major affiliates engaged in shipbuilding, marine engineering and related industries.
Doosan Enerbility is a South Korean corporation engaged in power generation equipment and infrastructure projects. It is the successor to Doosan Heavy Industries & Construction, reflecting its broader activities in energy and industrial sectors.