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France

First wave of exports on target -- Gamesa makes a start

Spain's Gamesa Eólica, has landed a series of wind turbine contracts and a framework deal which together up add to 112 MW of sales and potential sales spread across the growth markets of India, France and Italy. The Indian deal includes plans for a manufacturing joint venture.

The flurry of overseas activity seems to indicate that Gamesa meant what it said about focusing on international consolidation in 2005. Framework agreement aside, however, actual sales from the contracts amount to no more than 68 MW. Gamesa still has a long way to go if it is to achieve its 660 MW export forecast for 2005. Exports makes up 36% of the company's 1830 MW total sales forecast.

In France, Gamesa clinched an 80 MW, four year framework agreement with developer Française d'Éoliennes. It expects the deal to kick off late this month with an initial EUR 28 million turnkey contract for 36 MW. The first 19, 850 kW machines will go up in the Argonnes wind plant in north-east France, with a further 23 destined for nearby Côtes de Champagne.

Asian deal

In India, Gamesa signed a EUR 3.5 million contract with domestic industrial group and wind developer Pioneer Asia. The deal is for ten 850 kW machines as an extension to the existing Gamesa-equipped 5.6 MW Muppandal wind plant in the southern state of Tamil Nadu. As with the first phase, Gamesa will supply blades and nacelles, which will be assembled locally by the client's affiliate, Pioneer Asia Wind Turbines (PAWT). Gamesa says it expects to sign a manufacturing joint venture with PAWT "in the first half of 2005." PAWT's turbine facility produces 250 kW turbines but the company is gearing up to produce larger machines. Gamesa says the deal "consolidates the company's entry into India."

Meanwhile, in Italy, Gamesa has clinched a EUR 26 million deal to supply and install 28, 850 kW turbines. The machines go to the 24 MW Carlentini wind plant in Sicily developed by local developer IVPC Sicilia 3. Until now, IVPC has exclusively used Vestas turbines for more than 600 MW of development in Italy. For 2005, Gamesa expects 7% of its total sales to go to Italy. Gamesa Eólica supplied 100 MW to Italy over 2004.

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