Belgium-based gearbox maker Hansen Transmissions, a subsidiary of Suzlon Energy, is planning to sell its industrial gearbox division to Sumitomo Heavy Industries for Rs 465 crore (euro 75 million).
The division gets about 16 per cent of Hansen’s revenues; the company is mainly a wind energy gearbox manufacturer. After the transaction, Hansen will become a purely renewable energy company, the statement said. The division had generated revenues of Rs 514 crore (euro 83 million) in 2009-2010 and Rs 580 crore (euro 94 million) in the previous financial year, representing 15.6 per cent and 15.5 per cent of total sales of Hansen.
Proceeds will be used to pay debts, said Hansen. In the past year, Suzlon was scouting for suitable companies to sell off Hansen, either partially or fully, to reduce its debts. Suzlon currently holds 26 per cent stake in the Belgian gearbox manufacturer, one of the largest wind turbine gearbox makers in the world. Suzlon had acquired Hansen in 2006 for $565 million.
In November last year, the Indian wind energy major had divested 35 per cent in Hansen to raise Rs 2,500 crore to pay off its debts, which were then at about Rs 13,500 crore.
“The management team and board of Hansen have evaluated the proposed transaction in detail and believe it presents a great opportunity for both its industrial and wind gearbox businesses,” said the release.
The deal requires the Hansen plant in Edegem, Belgium, to be restructured and will lead to a headcount reduction in Belgium of up to 125 employees, of a total HIT headcount of 730 in seven countries worldwide. The unit employs 514 people in Belgium.
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Hansen Transmissions plans to discontinue its wind gearbox activities in the Edegem plant. This will reduce Hansen Transmissions’ current wind turbine gearbox manufacturing capacity by 1,100 Mw. Hansen has a total capacity of 8,700 Mw, as of September 30. This reduction in capacity will help reduce the level of over-capacity in Hansen Transmissions’ remaining facilities and is reflective of the continued volatility and uncertainty in the global wind energy market, said the company.
Hansen has manufacturing facilities located in Flanders, Belgium, for a wind turbine and industrial gearbox plant, besides a production plant for wind turbine gearboxes in Coimbatore, and an assembly and testing plant for the Chinese market, located in Tianjin.The company was earlier planning to increase its wind turbine gearbox manufacturing capabilities from 7,300 Mw per annum in 2008-09 to 14,300 Mw by 2012-13.