Valmont SM Secures Minimum USD $209.0 Million Multi-Year Order with Siemens Gamesa for Production of Rotor Houses for the European Offshore Wind Industry

Rhea-AI Summary

Valmont Industries (NYSE: VMI) has secured a strategic multi-year agreement with Siemens Gamesa Renewable Energy (SGRE) to produce components for next-generation rotor houses aimed at the offshore wind market, marking the largest order in Valmont SM's history. This collaboration emphasizes the increasing demand for renewable energy solutions in Europe and aims to facilitate sustainable innovation and local production. Valmont's sustainable practices, such as significant reductions in CO2 emissions, were pivotal in securing this partnership, with production anticipated to commence in Q4 2022.

Positive

• Secured largest single order in Valmont SM's history.
• Strengthened partnership with Siemens Gamesa Renewable Energy.
• Alignment with rising demand for renewable energy solutions globally.
• Production expected to support local European markets and sustainable innovation.
• Significant reductions in CO2 emissions through advanced production techniques.

Negative

• None.

• Strategic, multi-year agreement to produce components for the next generation of rotor houses
• Partnership will facilitate sustainable innovation and local European production

OMAHA, Neb.--(BUSINESS WIRE)-- Valmont^® Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure development and irrigation equipment and services for agriculture, today announced that Valmont® SM has entered into a supply agreement with Siemens Gamesa Renewable Energy (SGRE) to provide components for the next generation of rotor houses for the offshore wind market. The order is the largest single order in Valmont SM’s history.

Valmont SM, a Valmont company, is a leading provider of wind turbine towers and direct-drive generator rotor houses. Valmont SM’s expert craftsmanship and advanced production facility have been highly valued by SGRE. For over twenty years, Valmont SM has partnered with SGRE to support renewable energy projects. This latest agreement emphasizes the strength of the partnership and demonstrates the increased demand for renewable energy solutions globally.

“We have worked closely with SGRE for many years and this agreement is a natural extension of our strong relationship,” said Niels Brix, head of Valmont SM. “The scope of this order emphasizes SGRE’s significant pipeline of offshore wind projects in Europe. We consider this partnership to be a very important collaboration in supporting the green energy transition throughout the region."

In this strategic collaboration, the two companies are preparing for the alternative energy needs of the future. “Valmont and SGRE are a perfect match for the long-term cross-functional development of rotor houses for the offshore wind industry,“ says Mark Don Hansen, Global Commodity Manager at SGRE.

Innovative and Sustainable Production

Valmont SM leads the way as a champion for sustainability, having created a cutting-edge paint coatings facility for wind components, resulting in an annual reduction of paint usage of approximately 366 tons, and 8,500 tons of CO2 reduction annually. Additionally, with this order, SGRE is able to source locally-produced renewable energy components in close proximity to its supply chain needs.

“The number of sustainable initiatives that Valmont is driving to reduce CO2 in our supply chain was a strong deciding factor for us to secure this partnership,” added Mr. Hansen.

Production is expected to begin in the fourth quarter of 2022.

About Valmont Industries, Inc.

For over 75 years, Valmont^® has been a global leader in creating vital infrastructure and advancing agricultural productivity. Today, we remain committed to doing more with less by innovating through technology. Learn more about how we’re Conserving Resources. Improving Life.^® at valmont.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220331005928/en/

Renee Campbell

Renee.Campbell@valmont.com

Source: Valmont Industries, Inc.

FAQ

What is the recent agreement between Valmont Industries and Siemens Gamesa Renewable Energy?

Valmont Industries has entered a strategic multi-year agreement to produce components for rotor houses for the offshore wind market.

When is production expected to begin for the new components?

Production is anticipated to start in the fourth quarter of 2022.

What is the significance of the recent order for Valmont Industries?

This order represents the largest single order in Valmont SM's history, reflecting strong demand in the renewable energy sector.

How does the agreement support sustainability efforts?

The partnership focuses on sustainable innovation and aims to significantly reduce CO2 emissions in the supply chain.

What markets are impacted by the Valmont and Siemens Gamesa partnership?

The agreement primarily targets the offshore wind market in Europe.