Gamesa, a world leader in the design, manufacture and maintenance of wind turbines, inaugurated its first manufacturing base in Brazil, in the town of Camaçari in north-eastern Bahía. With this, the company has begun to make wind turbines in Brazil, just six months after it announced its decision to establish a manufacturing and sales presence in this country with the ultimate aim of making Brazil one of its core medium-term growth markets.
With productive capacity of 400 MW, Gamesa’s new plant assembles nacelles for 2.0 MW wind turbines (G9X and G8X). Gamesa’s industrial activity in this Brazilian town will create 100 direct jobs and will contribute to the development of the Brazilian wind power industry; ultimately, local suppliers will account for as much as 60% of the components used by the company to produce its wind turbines in the Brazil.
At the opening ceremony, which was attended by the Governor of the state of Bahía, Jacques Wagner, among other authorities, Jorge Calvet, Chairman and CEO of Gamesa, noted that “start-up of production in Bahía is the lynchpin of our commitment to participating in the development of wind energy in Brazil, energy that is sustainable and competitive, guarantees the supply of safe power and is proving a key engine in economic and social development across the globe”.
He went on to add that “In Bahía, we have found a mutual commitment and the ideal location for forging ahead with a project articulated around three major strategic cornerstones: the combination of our global leadership with local know-how; consolidation as a benchmark and competitive manufacturer in terms of cost, flexibility and reliability; and a commitment to community development in our operating markets in terms of the creation of stable jobs for qualified professionals and the generation of wealth through purchasing and alliances with local suppliers”.
Consolidation and orderbook momentum
Gamesa’s strategy in Brazil is to cement its position among the main wind energy manufacturing groups, to increase penetration of local developer contracts (international utilities and independent developers) and to build a meaningful sales, manufacturing and O&M network.
“Our engagement in the development of the wind power market will be unwavering. We understand the market’s specific drivers and needs. Our local presence will allow us to be very close to our customers, existing and prospective, as a result of upcoming wind power tenders, and our know-how in O&M services which confer a competitive advantage”, said Edgard Corrochano, head of sales and project management for Gamesa in Mercosur.
This constitutes Gamesa’s strategic response to the anticipated growth in the Brazilian wind power market short and medium term, where forecasts point to an eight-fold increase in installed capacity over the next five years.
The reactivation of this market has materialised to date in two supply agreements covering 300 MW for the wind farms to be developed in Brazil by Iberdrola Renovables and Corporación Inveravante. Specifically:
o Gamesa will supply Iberdrola Renovables with wind turbines with total capacity of 258 MW for nine wind farms in the utility’s pipeline in Brazil. Gamesa has been commissioned to install 129 G8X-2 MW wind turbines between 2011 and 2012. The scope of the agreement includes turbine supply, transport, assembly, start-up and maintenance for two years;
o Gamesa will supply Corporación Inveravante turbines with capacity of 42 MW at the Dunas de Paracuru wind farm under development in the state of Ceará, Brazil. This agreement encompasses 21 G87-2.0 MW turbines to be delivered over the course of 2H11. The contract includes turbine supply, transport, assembly, start-up and maintenance for a 10-year term.
Meanwhile, Gamesa has set up the subsidiary that will cover all of Mercosur in Sao Paulo, under the umbrella of its strategy of entering new emerging markets that offer high growth potential. Brazil is thereby being configured as the manufacturing and operating platform from which Gamesa will develop its business in neighbouring markets such as Argentina, Chile and Uruguay, all of which have new wind projects in the pipeline for the coming years.
Market prospects and growing presence in Latin America
Brazil presents the highest growth potential in South America: accumulated installed capacity at year-end 2010 stood at 931 MW, while the pipeline to 2013 totals 4,000 MW, according to the Brazilian wind power trade association.
Gamesa’s presence in Brazil dates back to 1998, when it performed engineering services for the maintenance of power lines and substations.
This decade meanwhile, the company initiated development of three major wind farm projects under the framework of Brazil’s program for fostering alternative electric power services (PROINFA for its initials in Portuguese), designed to boost the percentage of power generated from renewable sources such as wind power, biomass and mini hydro stations.
Today, Gamesa boasts a significant presence in Latin America where it has installed 200 MW of turbines across five nations and has agreements and/or orders covering close to 800 MW in Honduras, Brazil, Mexico and Costa Rica.