Gamesa confirms it is planning Brazil factory

BRAZIL: Gamesa will build a wind-turbine factory in Brazil to supply a 250MW supply contract with compatriot Iberdrola, Gamesa Brazil general manager Eddie Corrochano has confirmed.

"We are definitely planning to do this in the next year," Corrochano said. He was unable to add more as the plans are still in early stages.

Under Brazilian legislation, the majority of the turbines supplied under the agreement must be made locally. Gamesa’s US CEO Dirk Matthys said Gamesa also intends to build a turbine or tower factory (or combination of both) in Mexico to supply that local market.

Local production will allow Gamesa to cut transport costs from its US manufacturing facilities from where it imports much of the turbines sold in Latin America.

The revelations come as Gamesa is girding up for an ambitious expansion in Brazil and Mexico, Latin America's largest markets.

Gamesa won the contract last month through which it will supply Iberdrola with 129 G8X turbines of 2MW potency each from 2011-12.

Iberdrola won the €60m tender in the latest government wind-park auction in which 50 parks accounting for 1,520MW of capacity were awarded to several developers. The company will sell the output to Brazil's government for 20 years starting January 2013.