Doosan Corp. said in a regulatory filing on April 15 that its board of directors has decided to spin off its fuel cell and material business units. After the spin-off, the two companies, tentatively named “Doosan Fuel Cell” and “Doosan Solus,” respectively, will have an independent management system and be listed on the stock market.
Doosan Fuel Cell will focus on fuel cells for power generation, while Doosan Solus will concentrate on bio materials, which are used to produce electronics materials, such as battery foil and OLED, and cosmetics and medicines. Doosan expects that its fuel cell business will grow by more than 20 percent a year on average until 2040 in line with the government’s roadmap to activate the hydrogen economy.
Doosan Fuel Cell, which entered the market three years ago, won over 1 trillion won (US$882.22 million) worth of orders last year. The company also expects to receive 1.36 trillion won (US$1.20 billion) worth of orders this year as well.
In addition, Doosan expects that the demand for OLED materials will also surge. An official from the firm said, “The battery foil market will grow steeply by 42 percent a year on average until 2025 with the rapid expansion of the electric vehicle market.” The company also expects that the bio material market will grow as the healthcare and beauty industries continue to expand.
Doosan is planning to hold an extraordinary shareholders meeting on Aug. 13 to obtain approval on separation and relisting of the two companies and then spin off the firms on Oct. 1.