Doosan Heavy Industries adjusted its target contract signing amount for this year from 10.6 trillion won (US$9.5 billion) to 8.2 trillion won (US$7.3billion). This has to do with the Moon Jae-in administration’s nuclear-free policy that took shape in June. The company signed contracts worth a total of 2.426 trillion won (US$2.18 billion) in the first half of this year, up 4.6% from a year ago, after 9.053 trillion won (US$8.14 billion) in 2016.
The adjustment reflects uncertainties related to Shin Hanul Nuclear Power Plant Units 3 and 4 and the construction of a new coal-fired power plant. In May this year, Korea Hydro & Nuclear Power (KHNP) stopped the progress of the design phase of the construction of the third and fourth units. Previously, the construction had been scheduled to be initiated that month and completed in December 2022 and December 2023, respectively. The initiation of the coal-fired power plant construction project in Samcheok is up in the air, too.
Doosan Heavy Industries’ order backlog itself may fall to some extent, too. The amount was 19.079 trillion won (US$17.17 billion) as of the end of the second quarter. The South Korean government recently formed a special committee to determine whether or not to proceed with the construction of Shin Kori Nuclear Power Plant Units 5 and 6. In this project, Doosan Heavy Industries signed a supply contract worth 2.3 trillion won (US$2.0 billion) with KHNP and has yet to supply equipment worth 1.1 trillion won (US$990 million) in total.
The South Korean government is currently looking to halt the construction of nine coal-fired power plants in their early stages of construction as well as Shin Kori Nuclear Power Plant Units 5 and 6. At present, Doosan Heavy Industries is a main equipment supplier for five out of the nine.