September, 5th 2008. GAM, has signed a 6 million euros contract with the company Suzlom Wind Energy Spain for the assembly of 4 wind farms in the province of Almeria with a total power capacity of approximately 98 MW. The execution of the operation will be carried out by GAM division focused on wind power sector. This business unit is specialized in the transportation, installation and maintenance of wind farms.
The operation will start in the coming weeks. It includes the collection of the wind turbines in the place of origin and the transportation of these pieces of equipment first to the unloading point at the entrance of the wind farm and afterwards the transportation in the specialized platforms up to the final unloading point within the wind farm.
Additionally the contract foresee the possibility of rendering any other service required to transport, construct, install and complete the mechanical operation of the wind turbines.
The location and number of the wind turbines to be installed are:
Parque Los Jarales, in Abla, 8 units
Parque Las Lomillas, in Abrucena, 6 units
Parque La Loma de Ayala, in Nacimiento, 10 units
Parque Las Tres Villas, in Las Tres Villas, 25 units
This contract reinforces the intense activity already performed by GAM in the wind power sector where the company has important customers such as Acciona Wind Power; GAMESA or Vestas. By means of its specialized equipment, GAM transported in 2007 more than 250 wind turbines from its place of fabrication to different harbours to be exported, and installed another 250 wind turbines. Linked to this activity, the Company had a turnover of 19 million of euros.
Diversification strategy
In addition to its privilege position in the infrastructure and civil work sector, rental activity linked to non construction (such as general industry, wind power generation, railway maintenance, harbour activity, green, tools hire stores, events) is key in the strategic business plan develop by the Company one year and a half ago.
These new areas represent at the moment 1/3 of total turnover.
GAM is the leading machinery rental company in the Iberian market; a highly fragmented sector in which GAM is a comprehensive global operator thanks to its extensive network of branch offices. Following its recent acquisitions, and above all, thanks to its steady growth, the company has over 100 branch offices across Spain and Portugal and a fleet of more than 77,000 pieces of machinery made by the best manufacturers on the market. They include dump trucks, electrical equipment, compressors, platforms, self-propelling mobile cranes, handling vehicles, compression equipment, auxiliary equipment and light machinery, amongst others. Additionally, GAM is attempting to diversify its sources of revenue by strengthening divisions such as GAM Eventos, GAM Verde, GAM Energía, GAM Industrial, GAM Estructuras, GAM Vías, GAM Puertos, and Servigam.
GAM has presence in Romania, Bulgary and Poland. Proximately GAM will start its activity in Mexico and Brazil.
First semester sales growth in 2008 GAM was €187.8 million which represented a 48% growth compared to €127.3 million for the same period 2007. In terms of EBITDA, the Company reached € 80.8 million (+51%) and net profit growth of € 14.8 million. (+4,3%).
For additional information:
Covadonga Coto
Corporate Development Director
GAM
ccoto@gamalquiler.com
Telf. (+34) 985 73 22 73
Ignacio Cadahía
Investor Relations
GAM
icadahia@gamalquiler.com
Telf. (+34) 985 73 22 73
Gonzalo Torres / José Luis González
Gavin Anderson & Co.
gtorres@gavinanderson.es
jlgonzalez@gavinanderson.es
Telf. (+34) 91 702 71 70 |
