SEOUL, KOREA  - Doosan Group will lend 1 trillion won to its construction unit Doosan Engineering & Construction. In addition, Doosan E&C will take over the HRSG (heat recovery steam generator) business currently owned by Doosan Heavy Industries.

Doosan E&C held a board of directors meeting on February 4 and decided on a capital increase of up to 1.2 trillion won as part of a plan to improve its financial standing.

 

The centerpiece in the plan consisted of increasing capital of 571.6 billion won for Doosan Heavy, the largest shareholder with a 72.74-percent stake. In return, Doosan Heavy will hand over its HRSG business as an investment in kind. The HRSG business unit of Doosan Heavy is ranked No. 2 in the world with a 15-percent market share.

 

On the news of Doosan E&C's financial restructuring, the company's share price closed at 3,250 won, up 9.06 percent from the previous day's closing price.