Emerson Electric Co. (EMR), through its Process Management business unit, entered into an agreement with Korea South East Power Company (“KOSEP”) for the development of power plants. The financial terms of the agreement were not disclosed.
Emerson Process Management, a leading provider of intelligent control systems and software, measurement instruments, valves and industry expertise, is an expert in power plant automation. KOSEP is an experienced developer, operator and owner of thermal and hydro power generation facilities. Currently, 10% of electricity generation in Korea is provided by KOSEP.
Both companies will work together for modernizing the existing power plants and will construct new plants in Korea, the Middle East, Africa, Southeast Asia and Latin America. After the completion of this project, electricity generation in these regions will grow by 40%, leading to worldwide growth of 25%, as projected by the U.S. Energy Information Administration.
As per the agreement, Emerson Electric will provide its automation, control and instrumentation technologies to KOSEP, including its PlantWeb digital plant architecture with Ovation expert control system. The companies’ focus will be to technically improve boiler and turbine efficiency of the plants.
KOSEP and Emerson Electric have worked together on a number of projects in the past. The deal offers Emerson an opportunity to expand globally and be a part of an important development
process, providing benefit to a huge population. The companies will be able to provide their mutual customers with an efficient and reliable power generation.
Emerson is well positioned with the infrastructure, knowledge and experience to deliver its technology and product solutions to its customers worldwide. We anticipate that the emerging markets will continue to outperform the mature markets and could represent a significant portion
of the company’s total sales. Major competitors are ABB Ltd. (ABB) and General Electric Co. (GE).
Based in St. Louis, Missouri (USA), Emerson Electric Co. is a diversified global manufacturing and technology company. It offers a wide range of products and services in process management, climate technologies, network power, storage solutions, professional tools, appliance solutions, motor technologies and industrial automation.
We currently maintain our Neutral rating on Emerson.
Read the full analyst report on “EMR”
Read the full analyst report on “GE”
Read the full analyst report on “ABB”
Zacks Investment Research
