Eolice, LM Wind to Build Windmill-Blade Factory in Brazil

Eolice Participacoes e Investimentos and LM Wind Power Group will build a windmill- blade factory in Brazil to help meet rising demand.

The companies will start on the 100 million-real ($54.1 million) plant in April at Suape Port in the northeastern state of Pernambuco, Romualdo Monteiro de Barros, director of Sao Jose dos Campos, Brazil-based Eolice, said yesterday in a telephone interview.

Eolice was formed in 2010 by a group that included three former executives of Brazilian aircraft maker Embraer SA. (ERJ) LM Wind Power, based in Kolding, Denmark, is the world’s biggest independent maker of windmill blades.

Brazil imports blades because the two companies that have factories there, Tecsis Tecnologia E Sistemas Avancados Ltda. and Wobben Windpower - Industria e Comercio Ltda., aren’t meeting demand, Barros said.

“Tecsis doesn’t have the conditions to provide for all turbine makers,” he said. “Wobben uses a lot of its blades at its own wind farms.”

LM Wind will provide its blade-manufacturing expertise and will invest in the facility, Barros said.

“As much as 40 percent of the total installed capacity in 2011 had imported blades,” Eduardo Tabbush, an analyst at Bloomberg New Energy Finance’s office in Sao Paulo, said today in a telephone interview. “This is expected to decrease in the medium-term as Brazil increases local blade production.”

The factory will start producing 50-meter blades in the middle of 2013, he said.

It will be located near Buenos Aires-based Industrias Metalurgicas Pescarmona SA’s wind-turbine factory and a plant that makes wind-farm towers owned by Spain’s Grupo Gonvarri, Roberto de Abreu e Lima, an engineer at Pernambuco’s Secretary of Economic Development, said yesterday in a telephone interview.

“Pernambuco will become the first state in the country to produce towers, blades and generators -- the whole supply chain,” he said.

To contact the reporter on this story: Stephan Nielsen in Sao Paulo at snielsen8@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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