Suzlon Energy, the world's fifth largest wind turbine maker, has signed an agreement to acquire Portuguese energy major Martifier's 22.48% equity stake in REpower Systems of Germany for about EUR 270 million or Rs.1, 744 crore. Upon completion of the agreement by December 15, Suzlon will consolidate its holding in REpower to around 90%. Control over REpower is expected to boost Suzlon's financials, with the German company turning out an improved performance of late.
"This is a very important development for Suzlon and REpower and will put both the companies in a stronger position to derive synergies from the collaboration," said Tulsi Tanti, chainman and managing director, Suzlon.
The Portuguese company Martifier makes steel structures that are widely used to make wind energy fan blades and bio-diesel plants. Prior to the acquisition of Martifier's holding, Suzlon was holding a 36% stake in REpower, which it raised to 66% following an acquisition of a 30% stake in REpower from a major shareholder Areva of France in June. Earlier this month, at the AGM of REpower Systems, Suzlon directors Girish Tanti and Kirtikant Vagadia were elected to its supervisory board, replacing former members Bertrand Durrande and Prof Fritz Vahrenholt.
REpower is one of Germany's biggest wind-turbine makers and among the world's leading companies in the wind energy sector, specializing in high-output turbine technology particularly suitable for offshore turbines. The company provides end-to-end wind farm solutions, from the initial site assessment to installation and maintenance of high-technology turbines. The company recently maintained its outlook after reporting a substantial increase in its first quarter operating and net profit due to higher orders outside Germany. As of June, the company had installed 138 wind turbines with a capacity of 276 MW, 96% of which were outside Germany.
Suzlon Energy is one of the world's leading players in wind energy. The company has strategically focused on R&D and innovation to enter into emerging and high growth markets for driving its growth ambitions. Suzlon's Group Management Center is located in Amsterdam, Netherlands, while it has its corporate offices in Pune, India. The company is a vertically integrated wind turbine manufacturer with capacities to produce a range of products from components to complete wind turbine systems. With established manufacturing facilities in India, China and the United States, the company currently has a combined manufacturing capacity of 2,700 MW, which it will expand further to 5,700 MW this financial year.
For nine consecutive years, Suzlon maintained a over 50% share in the Indian market, while it held a little over 10.5% global market share in 2007.
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