[Courtesy of Doosan Heavy]
SEOUL -- A Philippine business partner has shelved a power plant deal with Doosan Heavy Industries & Construction, dealing a blow to efforts by the main contractor in South Korea's nuclear power industry to reorganize its business structure.
In October 2016, Doosan Heavy, a power equipment maker, received an order worth 952 billion won (891 million US dollars) to build the plant by 2020 for Redondo Peninsula Energy involved in the Subic Bay project. The project started as early as 2007 but construction has been delayed because of opposition from residents and environmental activists.
Doosan Heavy, a Doosan Group subsidiary, said in a regulatory filing Thursday that Redondo Peninsular Energy canceled the contract because the two sides failed to narrow differences in negotiations that followed delayed approval from Philippine authorities for electricity prices.
Doosan Heavy has sought the sale of non-core assets to improve its financial structure. It now faces an uncertain business outlook due to President Moon Jae-in's policy of phasing out power plants using fossil fuel.
reporter
Lim Chang-won
cwlim34@ajunews.com
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