Description Page - Doosan Power Systems

Our subsidiaries in Germany and Poland continue to undertake R&M
and fabrication work in their respective countries and beyond, fully
engaging in Doosan Babcock’s New Build process as this market
develops in Europe.
A Construction and Commissioning core support team has been newly
formed to provide expertise to our entire Doosan Babcock portfolio
throughout each project lifecycle. This includes support to Power
Projects in the New Build and aftermarket and refurbishment scene,
and is integral to enhancing our EPC status.
Nuclear
The most notable award of 2007 was the seven year deal with British
Energy to be their fleet boiler OEM via the Mechanical, Engineering &
Technology Support contract, a deal which spreads over all our three
business streams involving operational repair and maintenance,
technology and OEM asset provision and life extension projects
work. This contract could be worth £550m over the seven year term.
The Nuclear business stream continues to focus on major EPC projects
on the Nuclear Decommissioning Authority (NDA)-funded
Decommissioning and Clean Up market, primarily at Sellafield.
The Residue Export Facility, a major EPC project where we were the
lead project integrator in consortium, was completed with great
success with all programme and financial milestones achieved.
Following the success of Sludge Preparation Plant 1 Phase 1, we were
awarded Phase 2. Implementation of Phase 2 will commence in 2008.
DOOSAN BABCOCK ENERGY
Annual Report and Financial Statements 2007
“Our major utility
customers remain
committed to Doosan
Babcock and
long-term partnerships
continue…”
Bob Nimmo, Managing Director, Services, pages 6-7
“Doosan Babcock
reached a milestone
with its first major new
build order in Europe
for decades…”
Barbara Lefebvre, Managing Director, Power Projects, pages 8-9
A number of other major opportunities exist for projects work at
Sellafield and given the NDA budget focus at this site, in the short to
medium term, we established an office facility near the complex at
Westlakes. This facility whilst providing ‘front office’ business
development activity also provides the ability to carry out engineering
and other project activity local to the site.
Our Gateshead facility has opened a new reactor simulator training
facility for British Energy and together we are preparing for major
campaigns at Hunterston and Hinkley Point on boiler inspections
in 2008.
Services Outlook
The business is delivering excellent financial performance and looking
to deliver best in class financials over the term of the new business
plan. A key aspect of this improvement will be to undertake a ‘Design
to Cost’ initiative with focus on aftermarket business activity
improvement.
We will continue to focus on our core sectors and maximise our OEM
position to transfer our business from mechanical R&M contractor into
an OEM product and service partner.
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