Doosan Infracore said on July 12 that it had signed contracts worth over 98 billion won to supply engines to the U.S. market, including an 86 billion-won contract with PSI, the largest gas engine manufacturer in North America, and a 12 billion-won contract with Clarke, the world’s No.1 maker of engines for firefighting pumps, electrical parts and equipment.
PSI is a specialized maker of gas engines, which supplies the North American market with 40,000 units of gas engines for industrial use per year. Doosan Infracore signed a $75 million (86 billion won) contract with PSI, which calls for the supply of 4,400 units of gas engine long blocks, excluding fuel assemblies and ignition devices, by 2015. With the supply of engine long blocks from Doosan, PSI will remodel them to meet the emission standards in the U.S. and sell them as gas engines for power generators.
The market for power generator engines in North America was an arena long dominated by U.S. engine manufacturers, including Caterpillar, Cummins, and John Deere. Doosan Infracore made its gradual advance into the market by starting to supply products to PSI in 2008. Since Doosan Infracore only supplied a total of 1,050 units through last year, the acquisition of new orders amounting to four times the cumulative order volume over the past four years represents a significant achievement.
Doosan Infracore also signed a contract with Clarke to supply more than 800 diesel engines (worth about 12 billion won) by the end of this year. This is up 354 percent from the 177 supplied last year. Since Clarke is replacing the 8.1 liter-class engines (supplied by other firms) it has been using with those supplied by other companies, Doosan is expected to win additional orders going forward.
In addition to gas engines for power generators and diesel engines for firefighting pumps, Doosan Infracore’s compressed natural gas-powered engine, which it developed in 2010, meets the emission standards in the state of California, which are the strictest in the world. As a result, the Company signed a supply contract with a Los Angeles bus transportation company, thus entering the U.S. gas-powered vehicle engine market as well.
A Doosan Infracore source said, “In addition to the mid-size engine market, where we are expanding our market share, and including this latest batch of orders, we will introduce various models in the small- and large-size engine segments, in stepping up our advance into the U.S. engine market.”