Progress in all areas

Gamesa registered major progress in all business areas in 2010:

• it expanded its international footprint (93% of MW sold in 2010) and countries with greater wind resources and the fastest-growing economies increased their share of sales;
• commercial efforts focused on new regions and market segments, with the result that Gamesa entered 10 new countries and diversified its customer portfolio with over 20 new accounts;
• in 2010, Gamesa undertook a review of its production capacity, which resulted in the reduction of 500 MW of blade capacity in Spain and an increase in capacity in other countries by investing in growth markets such as China, India and Brazil. In Brazil, construction commenced on Gamesa's first plant in the state of Bahia (300 MW) after the company landed a contract to supply 42 MW to Inveravante and signed a contract to develop 9 wind farms for Iberdrola Renovables, with a total capacity of 258 MW;
• optimising capital expenditure, which nevertheless amounted to 128 million euro in the wind generator division, focused on: manufacturing the new G9X-2.0 MW platform in China, expanding production capacity in China and India, and manufacturing the G10X-4.5 MW unit in Spain;
• in addition to launching two new onshore platforms, Gamesa announced its decision to play a major role in the offshore wind business through an ambitious industrial and technology plan in the UK, and the development of two families of offshore turbines: G11X-5.0 MW and G14X (6-7 MW);
• a growing contribution from the services division: revenues increased by 39%, and MW under operation & maintenance contracts increased by 10%. In 2010, this area accounted for 12% of the wind turbine division's total revenues;
• the wind farm development division experienced an upswing in construction and sales, with the result that it broke even in 2010;
• the wind farm development and sale division expanded, entering new markets such as Poland and Mexico and landing new customers, such as Edison, Ikea and RWE;
• the wind farm business revived in the US and the first wind farm (38 MW) was commissioned there after two years of inactivity; progress was also made with joint development agreements in China. Cash flow in 2010 and the trading situation at the beginning of 2011 enable Gamesa to undertake its strategy over the next three years from a solid position.