Invest KOREA

Keeping Us Powered and Moving

Alstom Korea Ltd. and Alstom Transport Korea help meet Korea’s infrastructure needs

Most of us may not know what Alstom does, but if we can ride it, light it or power it, chances are, Alstom is why.

The company provided the technology for the KTX-1 trains, the signaling system for Seoul Subway Line 9 and the technology for more than 25 percent of Korea’s power plants. It also lights one in every four light bulbs, both in Korea and the world.

A world leader in transport infrastructure, power generation and transmission, Alstom, which is headquartered in France, began operations in Korea 50 years ago and today has two companies here, Alstom Korea Ltd. and Alstom Transport Korea. Both have had major projects in global Alstom’s four sectors: thermal power, renewable power, rail transport and grid (power transmission).

Alstom Korea Ltd. supplies all types of power generation technology and associated services. Its biggest power plant here, in Boryeong, has eight large gas turbines. The company is also building its second sub-sea HVDC power cable from mainland Korea to Jeju Island for KEPCO. Alstom Transport Korea’s most high-profile project is the KTX-1 high speed train.

“It’s a project that continues to give us good ongoing service business, spare parts and so on,” said Barry Howe, Country President of Alstom’s two domestic companies.

In terms of sales and orders, Korea ranks 21st among Alstom’s operations in about 100 countries. Howe and his staff of about 50 not only sell Alstom products into the domestic market, but also sell to major Korean companies supplying into third countries. In 2010, Alstom recorded total sales in the Korean market of $260 million. It is considering expanding its local sales and engineering operations to include manufacturing or other activities.

Main customers in Korea include KEPCO, independent power producers like GS Power Co. Ltd., KORAIL and the Seoul Metropolitan Government. Many of Alstom’s power plants were installed in Korea in the 1980s and 1990s. Operations grew steadily until about 10 years ago, when Korean companies mastered many of the technologies they needed. But Alstom continues to work well with Korean companies, which can at once be competitors, customers and collaborators. It expects the Korea-EU Free Trade Agreement to make doing business easier.

“So I’m confident that through the changes that we are looking at in our business model, we will go from strength to strength in this country,” Howe said.

In 2010, Alstom Transport Korea completed work on phase 2 of the AREX railway linking Seoul Station to Incheon International Airport. It completed an upgrade of four gas turbines at an Anyang power plant last fall and is now bidding for the extension to Subway Line 9.

Howe said Korea has a growing need for infrastructure and plans to increase the power-installed base and expand transmission systems. He sees potential in the country’s focus on environmental issues and efforts to move away from burning fossil fuel and toward renewable energy.
“Alstom sees a lot of opportunity here in the future and intends to play its full part in all of that,” Howe said.