GE acquires Danish blade manufacturer

Source: By David Weston, Windpower Monthly • Posted: Friday, October 14, 2016

LM Wind Power, a blade manufacturing company, has been acquired by General Electric Co.

GE struck a €1.5 billion ($1.6 billion) deal with the manufacturer’s owner, Doughty Hanson & Co., and has announced that it will be incorporated as a stand-alone unit, adding in a statement that it intends to support industry customers “with the aim of expanding these relationships.”

Industry analysts believe that the deal will work out well for GE, since it builds the company’s in-house capacity. At present, GE does not manufacture any blades of its own — it buys most of them from LM, which has domestic facilities as well as more in Denmark, Brazil, Canada, China, India, Spain and Poland.

“It gives GE state-of-the-art knowledge of blade technology and creates a better foundation for global outreach,” said Jacob Pedersen, an analyst with Sydbank A/S.

Pedersen views this deal as an indication that more companies are perceiving the wind energy sector as a viable endeavor.

Jérôme Pécresse, the CEO of renewable energy with GE, said that the deal will afford the company opportunities to be more local and flexible, as well as provide knowledge of turbine design (David Weston, Windpower Monthly, Oct. 11). — KB