Doosan starts joint venture in U.S.
Doosan Infracore, a machinery company, said on Wednesday that it will establish a joint venture with a U.S.-based gas-engine maker as part of its plan to expand into the global industrial engine market.
The company said it signed a contract at the Orange County Convention Center in Orlando, Florida, on Tuesday, local time, with Power Solutions International (PSI) to establish Doosan-PSI, stating that each company will invest 50 percent in the project.
The company said the Georgia-based joint venture will begin operations next year. It will develop industrial gas engines that are generally used as the powertrain for generators and compressors. Its goal is to sell more than 1,000 units per year to take up about 10 percent of the total market share by 2018 in North and South America, Europe and China. Doosan added that the new joint venture will not produce gas engines for cars.
The machinery maker decided to pursue the partnership with PSI because of the growing demand for gas engines caused by the recent shale gas boom.
Doosan Infracore has been trying to expand its market share in the gas-engine business over the past few years and signed a contract in 2012 to supply 4,400 long-block gas engines worth 86 billion won ($75 million) to PSI. PSI then upgraded the engines and sold them in the United States.
“We are pleased to have established a joint venture with our longtime partner PSI, as it could improve our business competitiveness in a short period of time,” said Yoo Joon-ho, a spokesman for Doosan. “We will try to set up the necessary [production] system as soon as possible to expand our market share.”
Established in 2001, PSI is a leading industrial gas-engine manufacturer and has also developed alternative fuels. The company made $237 million in revenue last year.
BY KWON SANG-SOO [email@example.com]