August 11, 2009
DSME buys U.S. wind turbine manufacturer
A Korean shipbuilding giant is getting into the wind turbine business--by buying a U.S. manufacturer.
Irvine, California, based Composite Technology Corporation (OTCBB: CPTC) says it has reached agreement to sell substantially all of the operating assets and operating liabilities of wind energy turbine manufacturer DeWind Inc., including its subsidiaries and certain assets of DeWind Ltd. to Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) of Korea.
Under the terms of the asset purchase agreements, the sale price is approximately $46,500,000 for substantially all of the operating assets and operating liabilities of DeWind Inc., and approximately $3,000,000 for certain assets of DeWind Ltd., subject to certain possible post-closing adjustments. The transactions are subject to customary closing conditions and are expected to close within the next 30 days. As part of the transaction, most of the DeWind employees will move to DSME.
"This transaction will help DSME enter the global wind energy market and to establish a strong presence in that market. We will leverage DSME's world class engineering and manufacturing capabilities and DeWind's technology and experience to become one of the world leaders in the wind energy sector," said Sang Tae Nam, President and the CEO of DSME.
Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) is the world's second largest shipbuilder with an annual capacity of 75 vessels and 7 to 8 large scale offshore structures. IDSME, originally established as Okpo Shipyard on Geoje Island, South Gyeongsang Province in 1973, was spun off from the Daewoo conglomerate in 2000. The government-run Korea Development Bank and KAMCO currently own 50% in DSME. DSME maintains order backlog totaling US$ 39 billion representing 206 ships as of April 30, 2009. In 2008, DSME achieved KRW 1.0 trillion in operating profit and KRW 0.4 trillion in net profit through sales of more than KRW 11.1 trillion. New orders amounted to US$ 11.6 billion in 2008.
DeWind Inc. designs, produces, and sells the DeWind series of wind energy turbines, including the new 2 megawatt (MW) D8.2 model in both 60Hz and 50Hz, the 2MW D8 model in 50Hz, and the 1.25MW D6 model in 50Hz, pending the sale of substantially all of its assets as described in this press release. The D8.2 turbine uses a WinDrive(R) hydrodynamic torque converter, by Voith AG, in combination with a synchronous high voltage generator that is synchronized directly to the grid without the use of power conversion electronics. DeWind D8.2 turbines are assembled at TECO Westinghouse Motor Co., in Texas.