Broadwind Announces Transformational Two-Year

Source: 1/10/2023, Location: North America

Broadwind, a diversified precision manufacturer of specialized components and solutions serving global markets, announced receipt of approximately $175 million in new tower orders from a leading global wind turbine manufacturer.

Fulfillment of the new order will occur during the full year 2023 and conclude by the end 2024. Ordered tower sections will be produced at both the Company’s Abilene and Manitowoc facilities.

• Transformational order reflects continued execution of business development strategy. During the last three years, Broadwind has pursued an aggressive development strategy designed to both increase its share-of-wallet with existing customers, while expanding into complementary adjacent markets – and new customer relationships. This expansion further leverages its proven precision manufacturing expertise, as evidenced by its continuing customer and market diversification during this period. This order, which is the largest-ever received from this OEM customer, reflects the successful expansion of this customer relationship that is expected to scale, over time.
• Order secures significant production capacity over multi-year period. The two-year order secures approximately 50% of optimal tower production capacity across Broadwind’s facilities in 2023 and 2024. This order is anticipated to further optimize plant utilization over the near-to-medium term, and facilitate improved economies of scale, liquidity and financial performance, versus the prior-year period.
• Order carries favorable economics, including the benefit of federal tax credit. The Inflation Reduction Act (IRA) passed into law in 2022 provides critical industries, including those supporting the energy transition, with tax credits designed to accelerate a generational shift in the energy production mix from fossil fuels toward renewable energy, including wind. Included within section 45x of the IRA is a provision for a new advanced manufacturing tax credit for which this order qualifies.

“This transformational new tower order is an historic accomplishment for our entire team, one that further establishes Broadwind as the leading precision manufacturer of heavy fabrications advancing the global energy transition,” stated Eric Blashford, President and CEO of Broadwind. “This important win will support a balanced production schedule over the next two years, materially increase system-wide facility utilization, and drive improved economies of scale across our organization.”

“Importantly, this new order will more than double our current total backlog, when compared to the backlog level reported at the end of the third quarter 2022,” continued Blashford. “Further, when adding in the benefit of the advanced manufacturing credit afforded by the IRA, this order will carry a favorable margin profile, one supportive of our strategic focus on profitable growth.”

“We anticipate that our tower order book will continue to fill throughout 2023, as raw materials prices and supply chain conditions further normalize, and development activity gradually improves,” concluded Blashford. “Importantly, while installation activity within the domestic onshore wind market has not yet returned to 2020 levels, orders such as this will position Broadwind to outpace growth within the broader market, particularly as we further consolidate share across leading global customers who value our domestic manufacturing base, skilled labor force and commitment to quality. We look forward to building on the momentum evident across our business, while continuing to drive long-term value creation for our shareholders in the year ahead.”

United Kingdom >>  11/29/2023 - Nova Innovation has won EU funding for a 4 MW tidal energy farm that will be home to the largest number of tidal turbines anywhere in the world. Nova ...
Germany >>  11/27/2023 - Vestas has received a firm order from SAB WindTeam GmbH for the Bockenem project in Lower Saxony, Germany.

The order consists of seven V...

Germany >>  11/23/2023 - bioconstruct GmbH has placed an order with the Nordex Group for the supply and installation of six N163/6.X turbines for the “Bösel-West” wind farm in...
United States >>  11/23/2023 - Vestas has received a 270 MW order to power an undisclosed wind project owned by a subsidiary of ENGIE North America in the USA. The order consists of...

United States >>  11/21/2023 - Van Oord’s offshore installation vessel Aeolus successfully installed the first of 12 turbines at the South Fork offshore wind farm. South Fork is the...
United States >>  11/21/2023 - PROENERGY unveiled a new, 48-MW aeroderivative turbine that provides firm power generation for more than 40,000* American homes. The PE6000 is designe...

Gulf Oil and Gas
Copyright © 2023 ICT All rights reserved. - Terms of Service - Privacy Policy.