Doosan Heavy Industries & Construction Co Ltd., which is part of the South-Korean Doosan Group, is in advanced talks over the acquisition of heavy machinery manufacturer Kvaerner IMGB, sources on the market told ZIARUL FINANCIAR.
The South-Koreans had been testing the waters in view of the takeover of the company, held by the Norwegians at Aker Kvaerner, since December 2004, a little while after becoming partners for the construction of the world''s biggest hydro-electricity plant, located in China.
The Aker Kvaerner group, which owns more than 99 percent in Kvaerner IMGB Bucharest, announced, shortly after taking over the Romanian company in 1998, that it was looking for a strategic investor to take over IMGB and the obligations undertaken through the privatisation contract.
The latest signals from Kvaerner pointed to Norwegians having become unwilling to sell the company, as it was getting increasingly more profitable. The sale of Kvaerner IMGB is a deal that could amount to as much as 30 to 50 million dollars (25-43 million euros), according to estimates made by industry sources.
The Kvaerner IMGB and Doosan representatives made no comment on the subject by the time the story was ready for print.
Founded in 1896, Doosan is one of the oldest and biggest South-Korean corporations, with turnover put at approximately 10 billion euros (11,520 billion won) in 2005 and an operating income of some 600 million euros (692.6 billion won).
Doosan Heavy Industries & Construction Co Ltd., whose revenues are put at 2.75 billion euros (3.18 billion won) and whose operating income is estimated at 192 million euros in 2005, has business divisions operating across a number of markets: turbine and generator manufacturing, equipment for nuclear power stations, thermoelectric power stations and desalination factories.
The quoted sources add that Doosan is interested in taking over IMGB in order to boost its liquid steel output and to be able to position itself as a supplier in Cernavoda business, which entails completion of the works to make the plant''s reactors operational.
Aker Kvaerner recently increased the share capital of IMGB by 57 million dollars (44 million euros), by converting into shares some older loans granted by the majority shareholder.
The Romanian heavy machinery manufacturer Kvaerner IMGB estimated an increase in turnover of 43 percent for 2005, compared with the previous year, due to higher demand for its products on the international market. The management estimated to see some 44.77 million dollars (i.e. about 37 million euros) in turnover and an operating income of some 1.4 million dollars.
Kvaerner IMGB had posted losses in the previous years.
Last year, the company officials announced a sales target of approximately 43 million euros for 2006, based on contracts concluded on foreign markets.
Ninety percent of Kvaerner IMGB''s output is exported to markets such as China, USA, or countries in Europe, Asia and South America.
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