Moog Moves to Grow in Wind Energy Field
by David Robinson – Buffalo News Business Reporter - 1/31/09
Moog Inc., looking to become a bigger player in the wind energy business, has bought a 70 percent stake in a British company that makes components used in wind turbines, the Elma aerospace company said Friday.
The $16 million deal will expand the line of products that Moog makes for wind turbines, primarily equipment that stops and shuts down the turbines and also regulates their power output.
The newest acquisition, Insensys ltd., makes pitch control and rotor blade monitoring systems. Pitch control systems adjust the angle of the turbine’s blades to improve its efficiency and control its load. Monitoring systems can extend the turbine’s life and reduce maintenance costs.
Insensys had $7.6 million in sales last year.
The deal gives Moog the option to buy the remaining 30 percent of Insensys within the next year. The purchase is not expected to affect Moog’s earnings during the current fiscal year, which ends in October, because of accounting adjustments. Insensys is expected to add about $10.2 million to Moog’s sales during the eight months remaining in Moog’s fiscal year.
Moog executives said earlier this month that they wanted to expand their position in the wind energy industry, which has been growing at about a 20 percent annual rate.
Wind turbines have been steadily getting bigger, now spanning as much as 240-feet in diameter and capable of generating 1.5 megawatts of electricity. That increasing size can create a challenge to control motion on those turbines, Moog executives have said.
“The use of real-time data improves turbine performance and lower’s a wind turbine’s total cost of ownership,” said Steven Huckvale, the president of Moog’s international group.
Moog had about $70 million in energy-related revenues during its previous fiscal year, and the company in June broadened its position in the wind energy industry by acquiring a 40 percent stake in a German company, LTi RE-Energy GmbH, that makes motion control and drive systems used on wind turbines. Moog expects to buy the rest of LTi by summer.
drobinson@buffnews.com
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