Isra-Mart srl:Gamesa boss rules out Suzlon takeover

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Isra-Mart srl news:

Spanish wind turbine maker Gamesa has no plans to buy a stake in India's Suzlon Energy, its chief executive said late yesterday, dispelling rumours the company was considering a bid for its rival manufacturer.

Jorge Calvet said the company also had no plans to enter into a partnership with Suzlon, insisting it was pursuing independent expansion plans on the subcontinent.

"There's absolutely nothing to the rumours," chief executive Jorge Calvet told news agency Bloomberg, referring to takeover speculation that has been circulating for several months despite denials from both companies. "We want to have more components made by ourselves in India."

The firm, which already has a 500MW manufacturing capacity in the southern city of Chennai, yesterday announced plans to invest 5 billion rupees ($110m) in two new Indian turbine component plants, doubling its potential production capacity to 1GW.

A facility in Gujarat will be operational by September and another in Tamil Nadu by the first quarter of 2012, the company said. Both will produce blades, towers and nacelles for Gamesa's 2MW wind turbines, which are specifically designed for the Indian market and its relatively low wind speed conditions.

The firm said it hopes to sell between 500MW and 800MW of equipment in India each year for the next few years, and will also supply nearby markets like Sri Lanka and Mauritius.

Gamesa's Indian arm was set up in February last year and generated 10 billion rupees ($220m) in revenue from domestic sales in the first year of operation, totalling 150MW of equipment.

Calvet added that he saw potential for the 'repower' market in India, which involves upgrading old wind farms with new technology and equipment to improve efficiency. He estimates there is over 250MW worth of replacement potential in India each year.

The firm is one of a number looking to exploit the booming wind market in South Asia. India is the world's fifth-largest wind market with an installed wind capacity of 13GW. Up to 20GW of wind power is expected to be added by 2016.
Other US and European wind firms, including Vestas Wind Systems and General Electric are also shifting manufacturing to the region.