Worthington Industries and Gestamp to Form JV
The JV, Gestamp Worthington Wind Steel will focus on producing towers for wind turbines being constructed in the North American market.
The JV partners have identified 30 acres in Cheyenne, Wyo. as the site of the joint ventureâ€™s initial production facility. The parties expect to sign an agreement in the next quarter and anticipate employing 150 people when fully operational.
Gestamp Wind Steel has developed global supply relationships with key players in the wind turbine markets and will bring the operational experience needed for the manufacturing of the towers. Worthington will bring its experience in North America manufacturing, purchasing, and human resources to the venture.
The JV anticipates beginning shipments of 80-100 foot long tower sections for wind turbines in the first quarter of calendar year 2012. The proposed facility will produce utility-scale towers for 2 to 3 Mw wind turbines.
Initial plans call for production of over 300 towers per year. The JV will generally serve as a subcontractor to manufacture the tower structures for renewable energy companies which construct the wind tower turbines. Wyoming was chosen because of its attractive logistical location relative to the growing renewable energy market in the western US.
The plant will be built in the Cheyenne Logistics Hub, which is near two major rail lines and the intersection of two interstate highways.
John McConnell, chairman and CEO of Worthington Industries, said: â€œThis JV is the result of pursuing opportunities in the renewable energy field for the past nine months in a newly formed Worthington Energy Group.
â€œWe are very pleased to be partnering with Gestamp, a company we have known for several years. We share many of the same operating principles and ideals, and also have complementary industry capabilities and experience.â€
Jon Riberas, president and CEO of Gestamp Renewables, said: â€œWorthington and Gestamp will work very well together in this joint venture. We have wind tower manufacturing facilities in Spain, Turkey, and Brazil, and are happy to be partnering with Worthington in our first North American facility.â€
Will the JV benefit the firms?
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