Martifer-Hirschfeld Energy Systems Begins Site Work for $40 Million Wind Power Components Manufacturing Plant in Texas

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Researched by Industrial Info Resources (Sugar Land, Texas)--Martifer-Hirschfeld Energy Systems LLC, a joint venture of Martifer Energy Systems SGPS (Oliveira de Frades, Portugal) (part of the Martifer Group) and Hirschfeld Wind Energy Solutions (San Angelo, Texas), have started site preparation for a $40 million grassroot wind power components fabrication plant to be constructed in San Angelo, Texas.

Site preparation work began last week for the first phase of a planned $40 million wind turbine tower fabrication plant on Old Ballinger Highway and includes construction of a 170,000-square-foot building on a 32-acre site. The first phase, estimated to cost $30 million, will have an initial tower-production capacity of 120 units per year. Building construction will begin in the next two months, with overall completion of Phase I slated for June 2010. Phase II is anticipated to be operational by late 2011 or early 2012. This construction will double the plant size and will result in a production capacity of 400 tower units per year. Each wind tower unit requires approximately 302,000 pounds of steel plate, 44,000 pounds of aluminum and 6,600 pounds of galvanized steel to fabricate. Long-term plans include the possibility of constructing other plants in North America. Approximately 110 employees will be hired initially at the new facility, and by the end of Phase II, 225 people will be employed.

Reece Albert Incorporated, located in San Angelo, Texas, was selected to provide construction services for the site work only. Martifer-Hirschfeld will act as its own general contractor and will evaluate bids from subcontracting firms.

Martifer began looking for a site for a new North America plant two years ago, ultimately selecting the San Angelo Site. Hirschfeld Industries considered going into the wind business in the past but it was never the right time. Hirschfeld initially saw Martifer as a competitor but approached them with plans for a partnership for the new facility with both owning a 50% interest in the limited liability corporation. Martifer will operate and oversee the plant and Hirschfeld will handle the human resources and financial side.

Martifer Energy Systems, founded in 2004, is one of 120 holding companies owned by the Martifer Group which was first founded in 1990 in Oliveira de Frades, Portugal, as a steel-fabrication company. The Martifer Group currently employs more than 3,000 people in 20 countries covering five continents. In 2007, the company collected revenues of $800 million and $526 million in the first part of 2008. The company produces manufacturing units which includes towers, coverings and gearboxes for wind turbines. They also build windfarms for third parties. The Martifer Group currently has a North American Reproduction Center in San Angelo, Texas, which started operations in 2007.

Hirschfeld Industries, headquartered in San Angelo, Texas, is considered to be one of the largest fabricators of highly engineered structural steel components in North America, fabricating more than 100,000 tons of steel per year. The company consists of 11 facilities and serves end markets in the transportation infrastructure, industrial development, commercial construction and power generation industries.

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