CS Wind Acquires Largest US Wind Tower Factory... Expects Additional 1 Trillion KRW Revenue Growth

[Asia Economy Reporter Park Jihwan] Eugene Investment & Securities evaluated that CS Wind's acquisition of the U.S. tower factory from Vestas, the world's No.1 turbine brand, could add sales worth about 1 trillion KRW in the future. Accordingly, they maintained a 'Buy' investment rating and a target price of 110,000 KRW. The acquired tower factory in Pueblo, Colorado, U.S., spans 1 million pyeong and is the largest existing global tower factory.

Researcher Han Byunghwa of Eugene Investment & Securities emphasized, "Currently, annual sales are around 300 to 400 billion KRW, but with expansion, sales could increase to about 1 trillion KRW."

The Biden administration is using policies that create demand through large-scale green industry stimulus plans and share the benefits domestically. In the wind power sector, anti-dumping and countervailing duties have been imposed on most countries for towers previously imported from overseas.

Researcher Han said, "Under a long-term contract with Vestas, deliveries are made, and companies like GE and Siemens also want tower supplies from CS Wind's U.S. factory," adding, "Since customers dominate the U.S. market, theoretically, if CS Wind's U.S. tower factory achieves a market share of over 40%, sales of 1 trillion KRW are attainable."

He added, "With an aggressive expansion policy, the highest profit growth is expected among global wind-related companies," and "Visibility is also high. It fully deserves a high valuation."