Valmet secures a major automation contract

Valmet secures a major automation contract

Vemag will provide a distributed control system (DCS) and electrical governor control equipment for the under-construction Daklo 1-3 Power Company's Daklo 1 and Daklo 3 hydropower stations in the Kon Plong district of Quang Ngai Province, Vietnam. Additionally, it will cover the engineering design, supply, and commissioning of the entire automation system to ensure the safe, reliable, and efficient operation of the system.

This system will control and monitor all critical water and electricity processes, ensuring the safety, reliability and high performance of power generation. At the same time, this system supports the sustainable development goals by optimizing water balance, maximizing energy efficiency and operational efficiency. 

This order was placed by the local partner of Valmet, Industrial Equipment and Solutions Limited (IESC). This company has signed a contract with the engineering general contractor to be responsible for delivering the relevant systems. This order has been included in Valmet's fourth-quarter 2025 order intake. The order amount will not be disclosed. The delivery work will be taken over by the customer. The Daklo 1 hydropower station will be completed and delivered by the end of 2026, and the Daklo 3 hydropower station will be completed and delivered in the spring of 2027. 

The currently under-construction Daklo 1 and Daklo 3 hydropower stations have installed capacities of 12 megawatts and 22 megawatts respectively. Once completed, they will become important renewable energy facilities in the Quang Giay Province of Vietnam. These run-of-river hydropower stations will supply clean electricity to the national grid, support regional energy supply, and efficiently utilize local water resources through modern hydropower infrastructure. The power stations are expected to commence commercial operation in the spring of 2027. 

Industrial Equipment and Solutions Co., Ltd. (IESC) is a local technology and engineering enterprise in Vietnam. As a partner of Vemag, it provides electrical and automation solutions for power plants and other industries. With high-quality products and services, it helps customers optimize operations and enhance efficiency, and has successfully executed various complex projects across Vietnam.

"We chose Vemag due to its outstanding reputation and mature technical expertise in the field of automation for hydropower projects. This solution ensures long-term reliability and efficiency with stable performance, and the price is competitive. Vemag's local full life-cycle support and collaborative model with our general contracting partner have given us confidence in the successful implementation of the project," said Nguyen Viet Cuong, the deputy director of Industrial Equipment and Solutions Company Limited (IESC). 

Valmet is a global technology leader serving the process industry. It was founded in December 2013 and its headquarters is located in Espoo, Finland. This company, with an industrial history of over 220 years (dating back to 1797), operates in more than 40 countries around the world and has approximately 19,000 employees, of which about 6,000 are from Finland. The company's net sales in 2024 are expected to reach approximately 5.4 billion euros. 

Vemagt mainly operates around five business lines, namely services, flow control, automation systems, pulping and energy, and papermaking. Its business territory covers regions such as North America, South America, Europe, the Middle East, Africa, the Asia-Pacific region, and China. The 2025 financial report summary of Vemagt will be officially released on February 6, 2026.

"We are very proud to have delivered the ABB distributed control system (DCS) to the Daklo Hydropower Station. This project showcases ABB's commitment to the renewable energy sector in Vietnam, particularly in the hydropower field. By providing advanced automation solutions and a strong local partnership, it highlights ABB's dedication to Vietnam's renewable energy sector. Through close collaboration, we will ensure long-term full lifecycle support and excellent operation for our customers." said Huynh Quang Tuyen, Sales Manager of ABB's Automation Solutions Business Unit. 

Vemag provides comprehensive automation solutions for hydropower stations, helping to enhance efficiency, reliability and the level of sustainable energy production. This move is not only an important initiative for Vemag to deepen its market presence in Vietnam's renewable energy sector and implement the concept of sustainable development, but also a vivid practice of its collaboration with local partner IESC to jointly promote regional energy transformation. The advanced automation solutions will fully unleash the energy potential of hydropower stations, achieve efficient synergy between water resources and energy, inject strong impetus into the clean energy development of Quang Ngai Province and the entire country of Vietnam, and further consolidate Vemag's technological leadership position in the global hydropower automation field, continuing to write a new chapter of in-depth cooperation with the Southeast Asian market.