Doosan Group to sell assets to focus on clean energy business

Doosan Group will focus on its clean energy-related business in return for financial assistance from the Export-Import Bank of Korea and the Korea Development Bank.

Under the business restructuring plan, Doosan Heavy will implement a scheme to shift from its coal and nuclear power plant business toward increasing its presence in offshore wind power plants and energy storage systems.

It must also make inroads toward the tidal, solar, and other energy sectors.

It is unclear whether Doosan Heavy will be able to expand its presence in the gas turbine market.

Consequently, the company would sell its power plant construction firms such as Doosan Heavy Industries & Construction Co. and Doosan Engineering & Construction Co., both causing cash shortages due to lack of orders.

Other assets also up for sale are oil pressure machine maker Doosan Mottrol, Doosan Infracore, Doosan Solus Co., venture capital firm Neoplux Co., the group's headquarters building, a golf course, and other non-core assets.

The group may not sell Doosan Mobility Innovation, a producer of portable fuel cell power packs for drones, and Doosan Fuel Cell, a fuel cell manufacturer, advertising agency Oricom Inc., professional baseball team the Doosan Bears, and small-sized construction equipment maker Doosan Bobcat.

However, the group will be pressured to sell Doosan Bobcat if its asset sales do not go as planned.

The main concern is that shifting toward renewable energy may take a few years to make a splash and may hurt its financial status.

State-run banks the Korea Development Bank and the Export-Import Bank of Korea injected 3.6 trillion won into the group to keep it afloat between March and June, as the group drew up a 3 trillion-won self-rescue plan.