27 Jul 2010 07:00
27 July 2010
ANNOUNCES NEW JOINT VENTURE COMPANY
'COSALT WIND ENERGY LIMITED' AND A
FRAMEWORK AGREEMENT WITH SIEMENS
Cosalt, the specialist provider of critical safety equipment for the marine, industrial and offshore markets, is pleased to announce that it has formed a joint venture with the Danish engineering company APRO, the provider of engineering services to the wind energy market. The joint venture company, which was previously owned by APRO, has been renamed Cosalt Wind Energy Ltd. It will benefit from the combination of APRO's expertise and Cosalt's safety offering and port based network of branches across the UK making it well placed to offer engineering, safety and inspection services to the major offshore wind energy projects now being established in the UK.
Cosalt hasacquired 80% of Cosalt Wind Energy Ltd from APRO for an initial consideration of £200,000 plus a deferred consideration of up to £430,000 depending upon the trading performance in the year ending 31 December 2011. Cosalt Wind Energy Ltd commences with a framework agreement with Siemens to supply specialist engineers for its offshore wind turbine activities, which are conveniently located near to Cosalt's operations around the UK.
In 2009, Cosalt set up a dedicated renewables division to supply inspection and testing services plus marine safety, lifting equipment, tooling and height safety products to the renewables sector, particularly offshore wind farms. The company has 11 UK operational bases many of which, such as Grimsby, Newcastle, Lowestoft, Edinburgh, Southampton and Birkenhead, offer immediate access to the wind farms being built off the UK coastline. In the Humber area alone the forecast is for an additional 5000 wind turbines to be in operation by 2020. Cosalt Wind Energy will enable the Company to accelerate its penetration of this market.
The Board believes that APRO's engineering expertise and long-standing customer relationships in the wind energy market will greatly enhance Cosalt's ability to capitalise on its strong market position in marine safety and inspection services. Established in 1998, APRO has an excellent reputation for installing and servicing onshore and offshore wind turbines. It has contracts with many of the world's major wind turbine manufacturers, including Vestas and Siemens. Given the huge potential growth in the UK offshore wind market, APRO is keen to replicate the success it has achieved in Denmark.
Mark Lejman, CEO of Cosalt, said: "Today's announcement follows on from the declared intention in our interim results statement to pursue opportunities in the renewable energy sector. This joint venture with APRO is an important step towards realising our objective of developing a major renewables business in the UK and Europe. Together we can deliver a complete package of safety, engineering and inspection services to the wind energy market."
Henrik Moeller-Jensen, APRO CEO said: "We are looking forward to working in partnership with Cosalt. Our two companies complement each other very well and we feel there is much to be gained from sharing our market knowledge and technical expertise. We have worked in the wind energy sector for many years and we know how to recruit, train and manage a large workforce of qualified wind turbine engineers. The formation of Cosalt Wind Energy Ltd means we can now back this up with all the products and services required to operate safely and effectively in a hostile offshore environment."
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ENQUIRIES:
Cosalt plc (www.cosalt.com) Tel: +44 (0)1472 725100
Mark Lejman, Chief Executive
Mike Reynolds, Finance Director
Evolution Securities Tel: +44 (0)20 7071 4300
Tim Worlledge
Cardew Group Tel: +44 (0)20 7930 0777
Tim Robertson
James Milton