The Hindu Business Line : Hansen to invest Rs 940 cr in Coimbatore facility

Plan layout
Seeks a Special Economic Zone where major suppliers can also set shop
Plans to employ 600, and produce 1,500-2,000 gearboxes a year

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Chennai Jan. 29 The Belgium-based Hansen Transmissions International, a subsidiary of Suzlon Energy Ltd, is investing Rs 940 crore to set up a manufacturing facility for wind turbine gearboxes in Coimbatore.

At a press meet here, Mr Ivan Brems, Chief Executive Officer, Hansen Transmissions, said that the company had sought `Special Economic Zone' for the facility — its first outside Belgium.

The new unit will employ 600 people and produce 1,500-2,000 gearboxes a year. It can make gearboxes for wind turbines of a capacity of 1.5 MW to 3 MW. Hansen specialises in large-capacity gearboxes, he said.

The facility will be fully integrated — it will cut gear wheels, make castings and assemble the gearboxes. It will also have modern test facilities. The company plans to start production in September 2008 and reach full capacity in 2010.

Factory space

The company will own an area of 2,20,000 sq m with a factory space of about 65,000 sq m. Hansen Transmission expects some of its major suppliers to set up shop in the SEZ.

As a thumb rule, an investment by Hansen would call for twice the investment from the suppliers — "every Rupee or Euro from Hansen would attract two as investment from suppliers," Mr Brems said.

Hansen Transmission is among the largest manufacturers of wind turbine gearboxes with a share of nearly a third of the global market. Over 15,000 of its gearboxes are in use worldwide.

The business from wind turbine gearboxes account for three-fourths of its turnover of Euros 285 million (Rs 1,909 crore) in 2005-06, he said. "We move with the market," Mr Brems said, when asked why the company had chosen Coimbatore to set up the new plant.

The largest markets for wind turbines are Europe (which accounts for nearly half the windmill capacity), the US and Asia. The facility here would cater to the wind turbine manufacturers in India and the region, he said.

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