Emerson Electric Co. (EMR) 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 Rexnord Corp. (RXN), AO Smith Corp. (AOS) and Quanta Services Inc. (PWR). AO Smith Corp has a Zacks Rank #1 (Strong Buy) while Rexnord and Quanta carry a Zacks Rank #2 (Buy).