Korean Doosan Co. takes profit at IMGB, as a first

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Industrial equipment producer Doosan IMGB (big dimension components and sub-assemblies) in Bucharest, company controlled by Koreans from Doosan, will post a profit of five million dollars this year of economic crisis, following the costs reduction and also an investments cut, Florin Antonescu, manager of the company told Financiarul daily.

It is a first when the majority shareholder takes profit at IMGB since 2006, when it took over the company. Doosan took over IMGB with a minus of 8.2 million dollars, and later on the loss deepened to 28.3 million dollars in 2007, to sink even further to 43.7 million dollars in 2008. But Doosan IMGB business followed an upward trend, from 40.6 million dollars in 2006 to 96.5 million dollars in 2008.

For 2009 Antonescu estimates a turnover rise, of 115 million dollars. The results in 2009 were much better, despite not being able to cover the order goals, based on an improved productivity and an important reduction of scrap due to the upgraded technology, said Antonescu.
According to him, the economic crisis affected the company through a slight drop in orders for cast parts and mainly through a raised interest rate on bank loans. Due to the last reason Doosan IMGB management reduced the level of investments in 2009 to 10 million euros compared to 20 million euros in 2007 and 40 million euros in 2008.

As for the markets Doosan IMGB operates on, Antonescu expects an intensified competition especially from the Chinese companies. In 2010 the company’s investment budget will be 8.5 million dollars, destined to the continuation of Bucharest plant renovation. IMGB was sold in 1998, when it was on the brink of bankruptcy, in exchange of 10 million dollars, to Norwegian-British Kvaerner Co.

In 2006, the company entered the ownership of Doosan, world leader on the cast and forged steel components market, in exchange of 25 million dollars. Main Doosan IMGB clients are energy companies, as Alstom, VA Tech, Voith Hidro, General Electric and in the ship construction industry Hyundai, Daewoo, HanJin, Samsung Heavu, Odense.

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