Daewoo Shipbuilding wins US$30 mln wind turbines deal

The deal calls for DeWind Inc. to establish the wind turbines in western Texas, Daewoo Shipbuilding said. The wind turbines will have a capacity of 2 megawatts each.

Last August, Daewoo Shipbuilding took over DeWind for $50 million as part of efforts to diversify its revenue source amid falling new orders.

Daewoo Shipbuilding’s latest foray into the wind energy business underscores local shipbuilders’ advances into new business areas to tackle falling new orders.

Hyundai Heavy Industries Co., the world’s largest shipbuilder, Samsung Heavy Industries Co., the world’s No.2 shipbuilder, and other major local shipyards are seeking to venture into the wind power sector as well.

South Korea’s Daewoo Shipbuilding and Marine Engineering (DSME) publicly announced on August 27 that the shipbuilding company has acquired 40,000 shares of DeWind Turbine, a U.S.-based wind power company, for 49.8 billion won (roughly $40 million) to advance into the wind energy business.

DeWind Turbine specializes in design and technology development of wind turbines and wind farm. The company successfully developed 750 kilowatt, 1.5 megawatt and 2 megawatt wind turbines to provide 710 wind turbines (760 megawatt) in China, Europe and South America.

DSME has previously unveiled its plan to make a full-fledged entry into the wind power turbine business, following its acquisition of DeWind Turbine for $50 million on August 12. DSME made a belated entry into the business compared with other companies such as Hyundai Heavy Industries and Samsung Heavy Industries; however, the latest acquisition enabled the shipbuilder to save the time needed for technology development and confirming its marketability.

“By combining DSME’s know-hows in design and DeWind Turbine’s wind power technology, we are confident to make the leap to the top in no time,” and added, “Starting from North America, our plan is to become the tenth largest company by 2015 and third by 2020 from securing 15 percent of the global market by 2020,” said the chairman of DSME.

To develop a new model, DSME plans to make an investment of $70 million. Furthermore, DSME will build a production plant in North America. The company’s blue print of the new business calls for creating a wind power station with 20 units of 2 megawatt turbines in Texas in the short term and expanding it into a huge wind power station composed of 420 turbines.