ABB_id2059
in News Departments > New & Noteworthy
print the content item

Wind tower manufacturer Trinity Industries Inc. has announced that it has entered into definitive agreements with Otter Tail Corp. to purchase certain property, plant and equipment of DMI Industries Inc. for a purchase price of approximately $20 million.

The assets to be acquired consist primarily of approximately 665,000 square feet of heavy manufacturing capacity and equipment located in North Dakota, Oklahoma and Ontario.

The Ontario facility acquisition has already closed. Trinity will take possession of the property, plant and equipment in the remaining facilities in two separate closings, which are both expected to close in the fourth quarter.

Last month, Otter Tail announced it was putting DMI up for sale, citing reduced demand and an unfavorable policy environment.

"The market value for DMI's assets has been significantly impacted by reduced demand for wind towers due to adverse market conditions affecting the industry, including uncertainty regarding renewal or extension of the federal production tax credit for investments in renewable energy resources," Otter Tail said in a statement in August.

Trinity’s plans for DMI are unclear, especially in light of the company’s recent announcement that it was planning on repositioning its resources away from wind turbine tower manufacturing.

"During the second half of 2012, we are repositioning a portion of our production capacity to meet the growing demand for products serving the oil, gas and chemicals industries," Timothy R. Wallace, Trinity’s chairman, CEO and president, said in a statement last month. "These products are well aligned with our core competencies. The repositioning will include, among other things, the conversion of certain facilities from manufacturing wind towers to railcars."

However, it is clear that Trinity will remain involved in wind tower manufacturing.

“I am pleased with this opportunity to expand our manufacturing capacity at a very attractive valuation,” Wallace said in a statement regarding the DMI acquisition. “These facilities are capable of producing many of the products Trinity currently manufactures, which will serve to further enhance our overall manufacturing flexibility.”


Hybrid Energy Innovations 2015

Trachte_id2056
Latest Top Stories

The Song Remains The Same: AWEA Says Stable Policy Can Protect U.S. Wind Investment

Although the U.S. wind industry added more than four times the amount of wind in 2014 compared with 2013, predictable policy is needed to sustain its long-term success.


High Net-Worth Investors Claim 'All Of The Above' On Energy, Renewable And Otherwise

According to a recent Morgan Stanley poll, high-dollar investors favor investment in renewable energy technologies, such as wind and solar.


U.S. Wind Power Installations Surpassed 4.7 GW Last Year, Although China Still Leads

Bloomberg New Energy Finance reports that U.S. wind installations came back in a big way from a disappointing 2013.


IRS Specifies Performance, Quality Standards For Small Wind Turbines

The Internal Revenue Service (IRS) recently issued guidelines creating safety and performance standards for small wind turbines to be eligible for the 30% investment tax credit.


Hot Times North Of The Border: Canada Tops Previous Record For Installed Wind Capacity

For the second consecutive year, Canada's wind market has bested the country's previous mark for new installations.

Hybrid Energy Innovations 2015