SPANISH WINDMAKER MOVES ON INDIA

Gamesa Denies Suzlon Bid Saying It’ll Expand in India Alone
Natalie Obiko Pearson, March 9, 2011 (Bloomberg News)

"Gamesa Corp. Technologica SA, Spain’s largest wind-turbine maker, denied making a bid to buy a stake in Indian competitor Suzlon Energy Ltd., saying it plans to build its own factories in India’s growing wind market…

"Gamesa [said it has not considered acquisitions in India and] plans to start building its first manufacturing plants this year…[It] plans to invest 5 billion rupees ($111 million) in three new Indian plants to make parts for wind turbines, including blades, towers and turbine rotor housings known as nacelles…"

India is an important wind market. (click to enlarge)

"India is the world’s fifth-largest wind market with an installed wind capacity of 13,065 megawatts…about 70 percent of the nation’s overall renewable energy capacity…U.S. and European wind-turbine makers, including Vestas Wind Systems A/S and General Electric Co. (GE), are shifting manufacturing to Asian countries that have lower labor costs, higher margins and a fast-growing domestic market…One hundred percent of [Gamesa’s] sales in 2010 were outside of Spain [which once was 35 percent of Gamesa’s sales]…

"…India is expected to grow to 25 percent of Gamesa’s sales from 5 percent today…Within three years, the company expects to sell 800 megawatts annually in India…Next year, Gamesa expects India to add 5,000 megawatts of new wind-energy capacity, more than double the Indian government’s estimate, as rising oil prices spur investment in alternatives."

Maybe Gamesa is going after Suzlon (click to enlarge)

"Gamesa will introduce a bigger, more efficient 2-megawatt turbine in India by March 2012…It currently makes an 850-kilowatt turbine at its assembly plant in Chennai…Two new plants will be built by September to make blades and towers…located in Gujarat state to tap into a growing wind market in northwest India…Most of India’s wind manufacturing and generation is currently concentrated in the south…The nacelle plant will be completed by the first quarter of 2012 in the southern state of Tamil Nadu,

"The manufacturing expansion will help Gamesa double its India production capacity to 1,000 megawatts per year by September…"