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18 Nov 2010 07:00
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THE WEIR GROUP PLC
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18 November 2010
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Weir expands in renewable energy
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The Weir Group PLC ("Weir") has acquired American Hydro Corporation ("American Hydro"), a manufacturer of high-efficiency turbine components for hydro-electric power generation.
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Based in York, Pennsylvania, American Hydro achieved sales of US$42.9m (Β£26.9m1) in 2009 and had gross assets of US$29.2m (Β£18.3m1) at 31 December 2009.
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Commenting on the transaction, Weir's chief executive, Keith Cochrane, said: "Hydro-power is the world's largest source of renewable energy. American Hydro has a particular strength in improving the efficiency of existing stations, a field in which Weir has extensive experience in the UK and Canada. Combined with American Hydro, we have the engineering depth and skills to accelerate our development in established hydro markets throughout the Americas and Europe, where there is great potential for electricity companies to improve renewable energy output in an economically attractive manner."
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Selim Chacour, president of American Hydro, added: "We have had an alliance with Weir in Canada for the last five years and prior co-operation on hydro projects in Scotland in the late 1990s. Through this we have come to know the group well. My business partners and I are confident that joining with Weir will see the business grow internationally, providing opportunity for employees and cost-effective upgrades for customers. We are very proud of the company we have built over the past 25 years and look forward to continuing to play our part in this new stage of American Hydro's development."
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In conjunction with the acquisition of American Hydro, Weir is investing C$10m (Β£6m) in a new service centre in Montreal to support American Hydro's sales growth in Canada.
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Contact details:
The Weir Group PLC
Helen Walker, Public Relations Manager Tel. 0141 308 3739 (Mobile: 07789 032296)
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Maitland Tel. 020 7379 5151
Suzanne Bartch
Rowan Brown
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NOTES:
American Hydro
At its 123,000 square feet facility in York, PA, American Hydro employs around 130 people in the design, engineering, and manufacturing of key components for hydro-electric turbines, with a focus on the US market. The company possesses leading-edge computerised design technology and the specialist machining capability to handle very large turbines. Further information on American Hydro is available from its website www.ahydro.com
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Weir Power & Industrial
Through its Glasgow (Scotland) based Power & Industrial division, Weir is engaged in the service, replacement and rehabilitation of hydro-turbines in the UK and Canada, working closely with utilities such as Scottish Power (UK) and BC Hydro (Canada).
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1 Exchange rate of Β£1 = US$ 1.5919 at closing in London on 17 November 2010.
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END
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