A wind energy group has been launched in Egypt thanks to El-Sewedy Cables. The company said it had created the Sewedy Wind Energy Group after purchasing a 30% stake in Spanish wind energy equipment manufacturer M. Torres Olvega for €40 million. El Sewedy has the option to acquire the remainder of the company by 2011.
El-Sewedy has no small targets and expects revenues of €37.3 million by the end of next year from its wind group, increasing to €434.6 million by 2011 through its manufacture of wind turbines. The company plans to target and supply Africa and the Middle East with its products.
El-Sewedy’s acquisition complements Egypt’s plans to utilize more renewable energy. The Egyptian government plans to generate 20% of the country’s energy needs from renewable sources by 2020.
"Wind power, which is particularly well-suited to Egypt’s climate and terrain, is expected to constitute a significant percentage of the target figure," an El-Sewedy statement read.
The initial agreement with M. Torres Olvega includes intellectual property rights and access to the Spanish company’s expertise. It also includes the exclusive distribution rights for M. Torres Olvega-branded turbines in Africa and the Middle East.
Complementing this deal, El-Sewedy reports that it also recently established a joint venture with German wind tower manufacturer SIAG to build wind towers, and had acquired a small Egyptian electrical engineering company that specializes in power generation projects.