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08/12/2009 10:22 AM     print story email story  

Composite Technology To Sell DeWind Turbine Business to S. Korean Firm News

California-based Composite Technology Corporation (CTC) (OTCBB: CPTC) has reached an agreement to sell substantially all of the operating assets and liabilities of DeWind Inc., including its subsidiaries, to Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) of Korea.

Under the terms of the asset purchase agreements, the sale price is approximately $46,500,000 for substantially all of the operating assets and operating liabilities of DeWind Inc., and approximately $3,000,000 for certain assets of DeWind Ltd., subject to certain possible post-closing adjustments.

DeWind designs, produces, and sells the DeWind series of wind energy turbines, including a new 2-megawatt (MW) model and a 1.2-MW model. The D8.2 turbine uses a WinDrive® hydrodynamic torque converter, by Voith AG, in combination with a synchronous high voltage generator that is synchronized directly to the grid without the use of power conversion electronics. DeWind D8.2 turbines are assembled at TECO Westinghouse Motor Co., in Texas.

As part of the transaction, most of the DeWind employees will move to DSME, according to a release.

"This transaction will help DSME enter the global wind energy market and to establish a strong presence in that market. We will leverage DSME's world class engineering and manufacturing capabilities and DeWind's technology and experience to become one of the world leaders in the wind energy sector," said Sang Tae Nam, President and the CEO of DSME.

Benton H Wilcoxon, Chairman and CEO of CTC, stated, "This transaction will allow CTC to focus its resources on its core-business of innovative high performance electrical transmission products."

RBS Securities, an affiliate of The Royal Bank of Scotland Plc, acted as exclusive financial advisor to DeWind. Milbank, Tweed, Hadley & McCloy LLP acted as legal counsel to CTC and DeWind. Macquarie Securities Korea Limited acted as financial advisors to DSME. Reed Smith LLP acted as U.S. legal counsel to DSME, and Shin & Kim acted as Korean legal counsel to DSME.

Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) is the world's second largest shipbuilder. DSME product portfolio includes commercial ships such as LNG carriers, oil tankers, containerships, Liquified Petroleum Gas carriers, pure car carriers, offshore structures such as FPSO vessels, drilling rigs, drillships and fixed platforms; and naval vessels including submarines, destroyers, rescue ships and patrol boats.

DSME was spun off from the Daewoo conglomerate in 2000. The government-run Korea Development Bank and KAMCO currently own 50% in DSME.

Composite Technology Corporation, based in Irvine, California, USA, develops, manufactures and sells electrical transmission and renewable energy generation products through its subsidiaries.

Another South Korean manufacturing firm, STX Heavy Industries, entered the wind turbine industry last month with the acquisition of Netherlands' wind turbine manufacture Harakosan Europe B.V.


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