Broadwind Energy Inc. (NASDAQ: BWEN) recently announced $11 million contract to supply towers for wind turbines to an unnamed U.S. customer. With the latest tower order, the management of Broadwind said that total new tower orders so far in 2016 have already exceeded $200 million. Broadwind looks poised to take advantage of robust U.S. renewable market, thanks in part to the Paris climate agreement signed in 2015.
Broadwind Energy Inc. (NASDAQ: BWEN)’s 4Q2016 delivery
Broadwind Energy Inc. (NASDAQ: BWEN) plans to make the delivery of the $11 million tower orders in 4Q2016. The company said the towers will be produced at its plant in Manitowoc, Wisconsin.
Back in March, Broadwind announced orders for towers amounting to $28 million. The company said at the time that it would deliver the order before the end of 2016. Prior to the March tower orders, Broadwind had in January announced another order to supply towers to another unnamed U.S. manufacturers of wind turbines. The January contract was valued at $8 million.
According to Broadwind’s CEO, Stephanie Kushner, the back-to-back orders they have received so far this year are valued well over $200 million. With that point, the CEO said that tower orders in 2016 have already exceeded the total of orders received in the last two years combined.
What’s driving demand for Broadwind towers?
High-quality products and solid partnerships are cited as the catalysts for the stream of tower orders that Broadwind Energy Inc. (NASDAQ: BWEN) has been getting in the recent months. The company also said that the orders tell something about the strength of the U.S. wind energy industry. The U.S. has stepped up efforts to increase adoption of renewable energy sources that include wind and solar.
Strong international demand
The demand for wind and solar products is expected to increase domestically and abroad as more countries get down to implement agreements in the Paris climate deal. More than 170 nations signed the Paris climate agreement that calls for increased development of clean energy sources. Because of its product quality and strong customer relationship, Broadwind Energy Inc. (NASDAQ: BWEN) is well-placed to capitalize on the Paris climate deal.
Broadwind Energy Inc. (NASDAQ: BWEN) decided to divest its Services business in a move that allowed the company to increase its focus on the core operation.