DGAP-News: Senvion S.A. / Key word(s): Acquisition/Expansion
Senvion implements the next growth step with acquisition of Kenersys assets in India
Hamburg: Senvion, a leading global manufacturer of wind turbines, has signed definitive agreements to acquire the wind turbine nacelle production facilities and infrastructure, complete product portfolio suite, wind turbine inventory and the service operations of Kenersys India Private Limited, in Baramati, India, in order to further move ahead with its market penetration of its new core markets. The production facility of nearly 250 megawatts (MW) of capacity has the potential to be expanded further. Senvion will be able to start its operations with the assets immediately after the closing of the transaction and obtaining the necessary approvals.
The product portfolio of the acquired assets ranges from 2.0 to 2.6 MW and rotor diameters from 82 to 120 meters, with cumulative installations of 220 MW in India with some of the large local key clients. With this acquisition, Senvion gets full rights to own, enhance and sell the Kenersys India product portfolio worldwide, including K82 (2.0 MW), K100 (2.6 MW), K110 (2.4 MW) and K120 (2.3 MW) in development. The existing products are also registered with the National Institute of Wind Energy, India, and hence available for Senvion immediately. Additionally, Senvion takes over the complete Indian service operations of Kenersys India Private Limited (220 MW).
Jürgen Geissinger, CEO of Senvion, says: "There are two main advantages of this acquisition: Firstly, we shorten our time-to-market in India rapidly and, secondly, we can build on a strong base to further align the Kenersys products with our existing Indian R&D organization and the well-known technical expertise from our Senvion tech centre in Germany. By adding 2-megawatt turbines with rotor diameters of 110 and 120 meters to our existing portfolio, we are able to offer our customers in India even more profitable and cost-efficient Senvion technology. We believe that this acquisition comes at the right time for us when the Indian Government sets its sights on 60 gigawatts of cumulative wind energy installations by 2022 and will have a positive impact on creating jobs in India for delivering state of the art solutions for India and additional markets."
Manav Sharma, CFO of Senvion, states: "Earlier this year, we decided and announced to invest, access and grow in the Indian market. We are a proud member of the Make in India initiative of the Government of India and this investment strengthens our commitment towards India. With the acquisition of specific Kenersys India assets, we are creating a fusion of Senvion's international growth strategy, high quality engineering competence and the Indian market presence of Kenersys. With this transaction, we can combine these assets with Senvion strengths for presenting superior offers to Indian clients. The service business gives us instant access to some of the top independent power producers in India. We will finance the transaction with existing cash on our balance sheet. Our focus now shifts to working with the Kenersys India Team and other stakeholders towards the closing of the transaction."
In February 2016, Senvion announced it was adding India to its core markets and presented Amit Kansal as Managing Director of Senvion India. Amit Kansal states: "The facilities in Baramati will give Senvion a ready home for production and is further supported by a product portfolio of German designed products of Senvion and Kenersys India, some of which have already been successfully localized to India, and key client relationships. We look forward to growing Senvion by a strong mix of bringing top of the line technologies to India, along with significant local knowhow and relationships."
Since 2015, a research and development Center in Bangalore is working full time to support the Senvion Product Development department, based at the TechCenter in Osterrönfeld in Northern Germany.
Investor Relations contact Senvion:
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