in News Departments > New & Noteworthy
print the content item

Wind tower manufacturer Trinity Industries Inc. has announced that it has entered into definitive agreements with Otter Tail Corp. to purchase certain property, plant and equipment of DMI Industries Inc. for a purchase price of approximately $20 million.

The assets to be acquired consist primarily of approximately 665,000 square feet of heavy manufacturing capacity and equipment located in North Dakota, Oklahoma and Ontario.

The Ontario facility acquisition has already closed. Trinity will take possession of the property, plant and equipment in the remaining facilities in two separate closings, which are both expected to close in the fourth quarter.

Last month, Otter Tail announced it was putting DMI up for sale, citing reduced demand and an unfavorable policy environment.

"The market value for DMI's assets has been significantly impacted by reduced demand for wind towers due to adverse market conditions affecting the industry, including uncertainty regarding renewal or extension of the federal production tax credit for investments in renewable energy resources," Otter Tail said in a statement in August.

Trinity’s plans for DMI are unclear, especially in light of the company’s recent announcement that it was planning on repositioning its resources away from wind turbine tower manufacturing.

"During the second half of 2012, we are repositioning a portion of our production capacity to meet the growing demand for products serving the oil, gas and chemicals industries," Timothy R. Wallace, Trinity’s chairman, CEO and president, said in a statement last month. "These products are well aligned with our core competencies. The repositioning will include, among other things, the conversion of certain facilities from manufacturing wind towers to railcars."

However, it is clear that Trinity will remain involved in wind tower manufacturing.

“I am pleased with this opportunity to expand our manufacturing capacity at a very attractive valuation,” Wallace said in a statement regarding the DMI acquisition. “These facilities are capable of producing many of the products Trinity currently manufactures, which will serve to further enhance our overall manufacturing flexibility.”



Trachte Inc._id1770
Latest Top Stories

Canadian Wind Industry Urges For More Federal Support

The Canadian Wind Energy Association says the country's federal government, once a big industry supporter, should again back wind power.


Wind And Solar Helped California Grid During Challenging Summer

According to the California Independent System Operator, the state suffered from heat waves and drought this year, and wind power played a "significant role" in keeping the lights on.


Recapping The Wind Industry's Third-Quarter Deals

Mercom Capital Group recaps investment and merger and acquisition activity during July, August and September.


Yearly Installed Capacity Figures Already Beat 2013 Numbers, More Wind On The Way: AWEA

While the American Wind Energy Association (AWEA) lobbies Congress to extend the production tax credit, the association notes wind projects now under construction signal a vibrant 2015.


Yahoo Inks Contract To Buy Kansas Wind Power

The Internet company plans to log in to the Alexander wind project, which is being built by community developer OwnEnergy.

Renewable NRG_id1934
Hybrid Energy Innovations 2015
BG 2015DblBox_id2032