Emerson Electric Co.
) has recently been awarded a bunch of new contracts. After
announcing on Tuesday the contract win for modernizing the
Poland-based Belchatów power plant, Emerson on Wednesday
announced that its Process Management business received another
automation contract. This contract was from South Korea-based
contractor Daelim Industrial Co. Ltd to automate a couple of its
power plants. The contract was valued at $11-million.
The scope of the deal entails Emerson to install its Ovation
control system at two power units at Taean thermal power plants
in South Korea. These coal-fired power units, each having a
capacity of 1050-megawatt, are of ultra-supercritical nature. The
power plants, now under construction, are expected to start
production in 2016.
Emerson's Ovation system will primarily be responsible to
monitor and control the core components of the plant that include
the BHK Boiler and Hitachi turbine. This apart, the system will
also do the critical job of integrating the two processes
ensuring the plant's optimal efficiency and reliability. In
addition, Emerson will be responsible for providing high-fidelity
stimulator that is required for testing and training, while also
supplying the latest technology for process optimization.
The Taean power plant is expected to become the largest
10-unit power-generating facility in South Korea once the units
are completed. After the completion of these power units, the
plant's production capacity is expected to increase to 6100
megawatts, which will aid in supporting the increasing power
demand in Asia, especially in Korea, which is the fourth largest
economy of Asia at present.
Emerson is a leading service provider for automation and is
providing solutions for almost 50% of power plants in Asia and as
much as 83% in South Korea. It currently holds a Zacks Rank #3
(Hold). Other companies in the industry that are worth
considering at the moment are
AO Smith Corp.
Quanta Services Inc.
). AO Smith Corp has a Zacks Rank #1 (Strong Buy) while Rexnord
and Quanta carry a Zacks Rank #2 (Buy).
SMITH (AO) CORP (AOS): Free Stock Analysis
EMERSON ELEC CO (EMR): Free Stock Analysis
QUANTA SERVICES (PWR): Free Stock Analysis
REXNORD CORP (RXN): Free Stock Analysis
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