Wind blade manufacturer TPI Composites to open its fourth plant in Mexico

12 May, 2017

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Arizona-based wind blade manufacturer TPI Composites announced a multi-year supply agreement with Danish firm Vestas Wind Systems to provide blades from two manufacturing lines (with option to add more lines) for the Vestas V136 wind turbine for markets in Central and South America.

The blades will be produced at a new facility in Matamoros, Tamaulipas, which is scheduled to open for production in the first half of 2018. The amount of investment and jobs created in this endeavor remain undisclosed.

According to TPI, its new manufacturing hub will feature state-of-the-art tools and equipment to reliably and cost effectively serve wind markets in Mexico, Central and South America via land, rail and by water from the port of Brownsville, Texas, US.

The facility, located on a 13-hectare site, will initially be 48,000 square-meters with the ability to expand and serve multiple customers.

“We are excited that Vestas has chosen to partner with TPI on blade production again and in a third geography to serve the growing Latin American wind market,” says Steve Lockard, President and CEO of TPI Composites.

TPI has produced wind blades in Mexico since 2002, and is currently producing blades in three facilities in Ciudad Juarez.

Quarterly results improve

TPI reported net sales for the three months ended March 31, 2017 increased by US$ 15.5 million or 8.8% to US$ 191.6 million compared to US$ 176.1 million in the same period in 2016.

Net sales of wind blades increased by 11.9% to US$ 184.3 million for the three months ended March 31, 2017 as compared to US$ 164.7 million in the same period in 2016.

Gross profit for the three months ended March 31, 2017 was US$ 18.0 million and included aggregate costs of US$ 6.2 million related to the startup of our new plants in Mexico and Turkey. This compares to gross profit for the three months ended March 31, 2016 of US$ 12.9 million, including aggregate costs of US$ 3.3 million related to the transition of wind blade models in our original plant in Mexico.

Net income for the three months ended March 31, 2017 was US$ 3.5 million, as compared to US$ 1.7 million in the same period in 2016.

Net income attributable to common shareholders was US$ 3.5 million during the three months ended March 31, 2017, compared to a loss of US$ 0.7 million in the same period in 2016.

EBITDA for three months ended March 31, 2017 increased to US$ 12.5 million, compared to US$ 11.0 million during the same period in 2016.

Adjusted EBITDA for three months ended March 31, 2017 increased to US$ 15.6 million compared to US$ 11.4 million during the same period a year ago. The Adjusted EBITDA margin increased to 8.1%, compared to 6.5% during the same period a year ago.

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