According to a Bloomberg report, diversified industrial
General Electric Company
) is anticipated to shortly announce the closure of the sale of
wind turbines worth approximately $604 million to Casa dos Ventos,
a privately held Brazilian wind power producer.
The purchase from General Electric is a result of the failure of
Wobben Wind Power, a subsidiary of Enercon GmbH, to fulfil its
contractual obligation to supply 230MW of turbines worth $364.4
million to Casa dos Ventos. Additionally, subject to General
Electric guaranteeing the completion of the contract by 2015, Casa
dos Ventos intends to acquire additional megawatts (MW) of wind
energy from General Electric. The additional turbines worth $237.7
million will produce 150MW of energy.
Brazil is counting on wind energy to generate 9.5% of its installed
capacity by 2022. If the deals materialises, the strategic move by
General Electric will help its subsidiary in Brazil to operate at
full capacity in 2015 and 2016. With the installation of 900
turbines by the end of 2014, the company is likely to capture 24%
share of the Brazilian wind turbine market. Casa dos Ventos is
expected to generate 600MW from wind turbines by the end of 2018.
General Electric is one of the most diversified technologies and
financial service corporations in the world. Its segments include
Power & Water, Oil & Gas, Energy Management, Aviation,
Healthcare, Transportation, Home & Business Solutions, and GE
Capital. The GE Power & Water segment produces gas, steam and
aero derivative turbines; generators; combined cycle systems; and
renewable energy solutions, as well as provides water treatment
services and equipment.
General Electric currently has a Zacks Rank #3 (Hold). Other stocks
that look promising and are worth a look include
Noble Group Ltd.
), both carrying a Zacks Rank #1 (Strong Buy), and
Carlisle Companies Inc.
), carrying a Zacks Rank #2 (Buy).
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