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

Setting The Record Straight: How Many Birds Do Wind Turbines Really Kill?

Several peer-reviewed studies are more or less in agreement with avian mortality rates caused by wind turbines. However, one study, which is wildly off from the others, is most often cited in the media. Why?


Six Takeaways From The IRS' Start Of Construction Guidance: What You Need To Know

The IRS recently issued guidance to wind developers to further spell out what "start of construction" means. Will you be covered?


Eagle Take Permits For Wind Farms - Will They Fly?

Now that the U.S. Fish and Wildlife Service has issued the first permit allowing the legal take of eagles, can wind developers expect more certainty in the agency's application process?


Despite 2013 Challenges, U.S. Wind Power Reaches All-Time Low Price

In a new report, the U.S. Department of Energy details the highs and lows of the country's wind industry last year, and the agency maintains that the U.S. sector remains strong.


Mexico On Pace To Set New Renewables Investment Record

A new report says the country has spent $1.3 billion on clean energy in the first half of 2014 and could end up seeing a record year. Furthermore, wind power is slated for significant growth in the region.

Canwea_id1984
Renewable NRG_id1934
UnitedEquip_id1995
Tower Conference_id1965