Andritz has reported hydro sales revenues up 34% to Euro217.6M (US$335M) in the first quarter, and has agreed to buy GE Hydro’s Canada-based business.
Earnings were not disclosed for the hydro unit, but the group said there was favourable development in the earnings margin in Q1.
The order book for the hydro unit is up on the same period last year. In terms of outlook, the hydropower unit’s project activity remains at a high level, the company added.
Andritz has also moved to acquire the Canada-based hydropower unit of GE Hydro. Financial terms of the deal were not disclosed. The acquisition is subject to regulatory approval and Andritz hopes to close the deal within a few months.
The company said that the strategic move would strengthen its presence in North America and in fast growing merging markets.
Under the deal, Andritz will buy GE Hydro’s unit it Canada, including engineering and project management resources, including approximately 200 staff, plus research and development capabilities and specialised generator production facilities.
In particular, the acquisition would bring additional strength to the Andritz’s capabilities in large Francis turbines of more than 400MW capacity.
Last year, following the non-completion by Impsa’s parent group of the proposed acquisition of GE Hydro, the hydropower business was reviewed by GE and the majority was placed in joint venture with Inepar of Brazil, to form the GEHI JV.