Daewoo Shipbuilding and Marine Engineering plans to invest to develop new wind power turbines and to build U.S. production facilities. South Korea's Daewoo Shipbuilding & Marine Engineering said it acquired U.S. wind power company DeWind for $50 million to advance in the wind energy sector.
DeWind is a subsidiary of electric wire company Composite Technology (OTC:CPTC), based in Irvine, Calif.
The transaction is expected to close in the next 30 days.
The ship building company was first established in 1973 as Okpo Shipyard on Geoje Island, in the South Gyeongsang province. It is the world’s second largest ship building company.
Following yesterday's acquisition, Daewoo said it plans to invest $70 million to develop new wind power turbines and build U.S. production facilities. The company says it wants to be the world’s third largest wind power equipment maker by 2020, holding 15 percent of the market share.
The deal is expected to allow Composite Technology to focus on its high-performance electrical transmission products (see CTC Cable expands production capacity).
It is also expected to help accelerate DeWind’s growth plans for its products. DeWind designs and produces wind energy turbines, including a 2 megawatt model. DeWind has delivered more than 550 wind turbines since 1995, with a total output of more than 500 MW (see DeWind targets GE's home turf, DeWind, S&M in $90M turbine deal and DeWind gets added order from Seawind).
If DSME bought DeWind for assets and liabilities it will be stuck with T-W as the provider in the North American market. I also think little money will be left over to benefit CPTC after the deal is done. Now CPTC needs to focus on their core business and give BW the boot.
IRVINE, Calif., May 5, 2005 /PRNewswire-FirstCall/ -- Composite Technology Corporation (CTC) (BULLETIN BOARD: CPTC) , a leading developer of high-performance composite core cables for electric transmission and distribution lines, today announced that it plans to reorganize under Chapter 11 of the U.S. Bankruptcy Code. The filing, made voluntarily today in the U.S. Bankruptcy Court for the Central District of California, will enable CTC to continue to develop, produce and market its innovative and cost effective composite core electrical conductor to the utility industry. CTC's strategic partners have indicated their continued support throughout this voluntary reorganization. "CTC's plans to immediately submit a plan of reorganization providing for payment in full (100%) to unsecured creditors including honoring and adhering to the material provisions of its debenture holder agreements," said Leonard M. Shulman of Shulman Hodges & Bastian LLP in Foothill Ranch, California, CTC's bankruptcy counsel.
CTC's bankruptcy is motivated solely to resolve several litigation matters relating to claims demanding certain CTC stock for alleged services and performance under certain subscription agreements. Although CTC remains steadfast in opposing these claims, the ongoing cost of litigation in diverse jurisdictions necessitates the consolidation of these cases into a single forum. "Although CTC's financial condition remains strong, this litigation must be resolved so that CTC may continue to grow and implement its goals," said CTC's Chairman and CEO Benton Wilcoxon. "We have chosen to file this litigation-driven Chapter 11 to allow the Company's management to devote its full resources to the production and marketing of our products, rather than the demands and concerns created by litigation events that the company believes are merely extortionate claims made by those parties that have not contributed real value to the company."