Description Page - Doosan Power Systems

DOOSAN BABCOCK ENERGY
Annual Report and Financial Statements 2007
Operational Review
Services
This year has seen the performance of the Services business reach new
levels of success with class-leading returns in financials, quality, health
and safety. Underpinned by increased customer investment, this strong
performance has been achieved through our three main business
streams:
• Power & Technology - the Original Equipment Manufacturer (OEM)
and engineering expertise
• Construction - the main aftermarket repair and maintenance (R&M)
business
• Nuclear - the Engineering, Procurement and Construction (EPC)
projects integrator business in Decommissioning and Clean up
Power & Technology
Power & Technology has maintained significant market share in Large
Combustion Plant Directive (LCPD) emission reduction projects for the
Phase 1 requirements, to be in place by 2008, capturing new contracts
including Electrabel’s Langerlo in Belgium, to install our Boosted
Overfire Air (BOFA) technology. Our customers are now beginning to
focus on the LCPD Phase 2 requirements, and we are developing
leading Selective Catalytic Reduction technology through a design
study award from E.on at their Ratcliffe plant to maintain the UK market
lead position.
Our unique Advanced Supercritical Retrofit offering, whereby a high
efficiency supercritical boiler replaces the existing boiler whilst
retaining the plants other infrastructure, provides a cost effective
solution. There is strong interest in this concept and Scottish Power
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have commissioned feasibility studies for their plants at Longannet
and Cockenzie.
The strength of our OEM position in the UK will be a major target
for business growth in 2008 and beyond, as our customers look for
assistance in extending the life of their facilities, especially with the
current delay in ordering of new, non gas-fired plant.
Beyond the UK, we continue to undertake contracts in a number
of countries. The major overhaul at Nikola Tesla in Serbia nears a
successful completion, whilst we anticipate a full order release for
a boiler project in Libya soon.
Construction
Our Construction business stream continues to be Doosan Babcock’s
high turnover, high intensity business activity carrying out major
repair and maintenance contracts in the Power, Petrochemical,
Pharmaceutical and Industrial market sectors across the UK and
in Europe.
Our major utility customers remain committed to Doosan Babcock and
long-term partnerships continue with RWE, Drax Power, Scottish Power,
Scottish & Southern Energy and British Energy. This is a testament to
our excellent contract delivery record coupled with our industry-leading
Safety and Quality performance. We have been working against tight
schedules in order to return strategic plant back to the customer in
record time, such as on the INEOS Grangemouth and Total Lindsey Oil
Refinery projects, resulting in added customer satisfaction.