WEG announces new wind energy technological agreement
WEG S.A. (Bovespa: WEGE3 / OTC: WEGZY) announced today that it has entered into a technological agreement with Northern Power Systems ("Northern Power" or "NPS"). Founded in 1975 and based in Barre, Vermont, USA, Northern Power designs, develops and manufactures wind turbines, been a pioneer and one of the technological leaders in permanent magnet direct drive or PM/DD.
The technological agreement foresees that the companies will cooperate so WEG can offer to the South American wind market a utility-scale technology platform that will include wind turbines rated between 2.1 and 2.3MW and rotors sized from 93m to 110m, which shall meet customer requirements in a range of a wind classes. Turbines leveraging PM/DD technology typically demonstrate higher availability and lower maintenance and repair costs than traditional gear-based turbines, offering higher energy production over the turbine¿s lifetime, and providing enhanced economic returns to owners. The wind turbines initially will be manufactured at WEG¿s manufacturing facilities in Jaraguá do Sul, state of Santa Catarina, Brazil.
WEG has already secured an initial order from Geradora Eólica Bons Ventos da Serra I S.A., a partnership between Brazilian Servtec Group, a tradition strategic player in the Brazilian engineering and energy spaces, and several investments funds managed by Rio Bravo, a very active financial player in this industry. WEG will supply 11 of the 2.1MW wind turbines to a wind farm located in Ibiapina, in the State of Ceará, from mid 2014 onwards. Pedro Fiúza, Servtec Group¿s Director in charge of wind energy mentioned that: "we are proud to have chosen a Brazilian company to be the supplier o four ¿Bons Ventos da Serra I¿ wind farm. We are confident that WEG hast the capabilities and the technology to develop first rate wind turbines."
According to Mr. João Paulo Gualberto da Silva, WEG¿s Head of Wind Energy Generation Business, "Northern Power¿s PM/DD technology offers a significant performance advantage to a vast array of customers in South America. The South American wind market, particularly Brazil, is growing at an incredible rate, and the initial market response to WEG¿s turbine offerings has been very positive." Mr. Gualberto da Silva also adds that "combining WEG¿s manufacturing and system integration capabilities with a technological partner like Northern Power, puts us in a very good position. We are offering proven technology, capable of providing solutions for both current and evolving wind market demands."
"WEG has tremendous capabilities to supply all aspects of wind power plants integrated with a strong understanding of the needs of the South American wind market, and Northern Power has the experience and technology necessary to provide the right solutions for this market," said Troy C. Patton, Chief Executive Officer of Northern Power Systems.
With this announcement, WEG also informs that the partnership with Spanish company MTOI, originally announced in 2010, has been terminated.
Laurence Beltrão Gomes
Finance and Investor Relations Officer