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California cable company buys European wind turbine maker
1 February 2006
Californian cable manufacturer Composite Technology Corporation (CTC) is poised to buy a 48% stake worth $5 million in EU Energy Inc, the American subsidiary of EU Energy plc of the UK. EU Energy acquired wind turbine manufacturer DeWind in 2005 from British industrial company FKI. DeWind turbines, originally designed and made in Germany, are to be marketed in North America for the first time. EU Energy claims the DeWind machine is one of the few wind turbines to have obtained 100% gearbox reliability over the past five years--gearbox failure is a contentious issue for the wind industry. Subject to a due diligence review of EU Energy's business and prospects in the US, CTC Wind Systems Corporation, a 100% subsidiary of CTC, will pay $1 million on closing and a further $4 million in two instalments in March and April. The deal will most likely include agreements on additional areas of co-operation, such as the sale of CTC cables and development of composite blade technology. The companies already co-operate in developing composite wind turbine tower technology. "We pride ourselves on having introduced an overhead cable that will save power utilities on capital expenditure and operating costs," says Benton Wilcoxon of CTC. "We are now poised to be involved with bringing the best of German wind energy technology to the US and Canadian markets." From EU Energy, Michael Porter says: "The association with CTC will allow us to provide a complete solution to our customers, from generation to interconnection, including expansion of the capacity of the transmission system through which our systems must deliver power."
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