Sunday, March 25, 2007

Essar and REpower to build wind turbines in India

REpower shot to fame in India because of Suzlon's battle with French nuclear power giant Areva to acquire it. Regardless of the outcome of that battle though, REpower seems set to come to India.

REpower is teaming up with the Essar group, under a license agreement signed last year, to start design and construction of 1.5 MW to 2 MW wind turbines in India, and to market them in South East Asia. There is the likelihood of a future JV to build or import 3MW to 5MW turbines. This JV would also have access to other technological developments at REpower, and the market could also be expanded beyond South East Asia. REpower has entered the Chinese market separately through a JV with Chinese companies, North Heavy Industry Corp and Honiton Energy Ltd.

"Essar had plans to set up the manufacturing plant in a port-based location with initial investments of Rs 50 crore." >>FE

Update of the Suzlon-Areva battle for REpower

The REpower supervisory and management boards have recommended that shareholders accept Areva's last bid (140 euros per share) over Suzlon's (126 euros). However in an interesting twist REpower also suggested that it would prefer to be acquired via a joint bid by both companies. The rationale seems to be that while either of the two companies could help REpower in its growth plans, a combination of the two would offer far more.