Alstom in Brazil tower joint venture

BRAZIL: Alstom is to form a joint venture (JV) with Brazilian infrastructure group Andrade Gutierrez to produce steel turbine towers in the country.

The factory will supply towers for Alstom's turbines

The two companies will work together to construct a factory in Bahia state in the north-east of the country, where significant wind power development is taking place.

Andrade Gutierrez will take a 51% holding in the business, while Alstom will own a 49% stake. The total investment in the venture will be around EUR 30 million.

Alstom said that it expects the factory to produce around 200 towers per year, with approximately 250 people directly employed at the plant.

Last year, Brazil's national development bank, BNDES, approved Alstom under its local content rules for turbines, meaning projects featuring the company's machines can recieve financing - a factor seen as essential if manufacturers are to offer their turbines at a competitive price.

This will be the Alstom's third wind-related factory in Brazil. In 2011, the company opened a nacelle plant in Bahia. And in 2013 it built a tower factory in Rio Grande do Sul in the south of the country.