Malaysia’s Zelan Teams with China’s Dongfang for Power Projects

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Researched by Industrial Info Resources (Sugar Land, Texas). After winning the $620 million contract for a 600 MW power plant in Rembang, Indonesia in March, Malaysia’s Zelan Holdings (Kuala Lumpur) is bidding for another 600 MW power plant project in Indonesia and a 1,200 MW power plant in Botswana. The Indonesian plant project at Tanjung Jati is at the re-tendering stage and a request for pre-qualification has been filed for the Botswana project.

Zelan has awarded a $220 million contract to China’s Dongfang Electric Corporation (DEC) to supply power generation for the Rembang project. The company is bidding in a consortium with DEC for the Tanjung Jati and Botswana projects. Zelan’s first collaboration with DEC was in 2005 after the Malaysian company secured the EPCC (engineering+procurement+construction+commissioning) contract to build a 600 MW (2 x 300 MW) power plant in Chhattisgargh, India. DEC will supply duplicate units of boilers, turbines and generators for the Rembang plant which will be commissioned in 2009. DEC is one of the top three turbine producers in China with an annual production capacity of over 30,000 MW of generating equipment.

Albert Chang, Zelan’s CEO, said that Indonesia was an exciting market for power plants for his company with ten new plants with a combined capacity of 7,000 MW to be built in Java in 2007 and a further 25 new power plants with a total capacity of 10,000 MW planned for construction in regions other than Java. He said that Zelan looked to work with DEC on projects in Malaysia and other countries in the region.

Chang said that the group, involved in construction, manufacturing and property, has a current order book of $1.4 billion, 80% of which is overseas work including two infrastructure projects in Saudi Arabia.

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