Cicero, Ill.-based Broadwind Energy Inc. has announced the sale of its idle wind tower plant in Brandon, S.D.
Proceeds from the sale, net of closing costs, totaled approximately $11.7 million. Broadwind says a portion of the proceeds was used to repay the underlying $3.5 million mortgage balance, and the remainder will be available for general corporate purposes.
During the third quarter of 2011, as part of a planned 600,000 square-foot reduction in Broadwind's manufacturing footprint, the Brandon plant was listed for sale. With the completion of this transaction, Broadwind's square-footage reduction totals approximately 400,000 square feet, or two-thirds of the targeted reduction.
"This sale was an important part of our strategy to reduce our production footprint in line with longer term expected wind tower demand and our strategy to diversify our industry concentration," states Peter Duprey, president and CEO. "This will reduce our fixed overhead and further strengthen our balance sheet. We believe our remaining two plants will be sufficient to support production of towers to meet customer demand for the next several years."