Emerging markets fundamental to Gamesa progress

One of the world’s top wind power companies is looking to maintain its profitability through continuing to focus on Latin America and India, despite foreseeing ‘another tough year for the sector in 2014.’

A Gamesa spokesperson told Power Engineering International that the Spanish wind operation, the world’s fourth largest, will continue to develop its 2013-2015 Business Plan in the coming year, aiming at maintaining operational profitability”even in the lower part of the cycle- while laying the foundation to emerge stronger, ‘in a position of leadership in the wind industry.’

Europe and North America will continue to hold the attention of the company but it is in the emerging markets that Gamesa hopes to continue to shape positive results.


“Gamesa (BMAD:à‚ GAM) foresees 2014 will be another tough year for the wind energy sector. We don’t expect new supporting policies for renewables nor significant growing in global turbine demand,” the spokesperson told PEi.

“In this context, we will continue to work on strengthening our profitability and order intake, despite the economic difficulties and complex situation in the industry.”

Riding out the harder times for the sector, Gamesa’s success in maintaining its leading position is down to a number of factors, namely its project mix, sound execution of the Basque-based firm’s plan to save on fixed costs, optimization of variable costs, and the strong contribution from its services division. Gamesa is also focused on strengthening its balance sheet and reduce net financial debt.

Despite what Guerra refers to as ‘patchy demand’, Gamesa’s order intake is boosted by the strong competitive position it has in growth regions such as Brazil and India. Their sound business in those regions is down to the company’s network of local teams and supply chains, which have greatly helped in meeting customer requirements.

There is no doubt that as 2014 unfolds, Gamesa will continue to pursue growth through its Latin American an Indian businesses.

“These regions will continue to contribute to the growth in sales of the OEM in 2014. The structural need for power as well as highly competitive wind resources will drive growth in Brazil and Mexico. Meanwhile India will be driven by power deficit and state tariffs.”

Despite focus elsewhere, there is still room in the company’s plans for its traditional markets.

“We also foresee potential in other markets such as the US, following the extension of the Production Tax Credit (PTC), and in some countries in northern Europe, such as Germany and Finland, thanks to our multi-megawatt platform (4.5 and 5.0 MW), designed to reduce the cost of energy minimizing the number of positions and maximising output.”

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