Wind tower orders totalling USD 750m urge Arcosa to build new factory

March 15 (Renewables Now) - Infrastructure-related products and solutions provider Arcosa Inc (NYSE:ACA) on Tuesday announced plans to open a new wind tower manufacturing facility in New Mexico after booking USD 750 million (EUR 700m) worth of orders for delivery in the period 2024-2028.

The Dallas-based company said in a statement it expects to invest between USD 55 million and USD 60 million to purchase property in Belen, modify the existing plant and procure the needed equipment. Arcosa noted that the project will be supported by attractive incentives from the state and the city of Belen.

“We look forward to expanding our manufacturing capacity to New Mexico, where market demand for new wind projects is robust,” commented Antonio Carrillo, president and CEO of Arcosa.

The start of production at the new site is scheduled for mid-2024, the company said, adding that more capacity is available to pursue further growth in the region.

As per the new wind tower orders, Arcosa said that most of them concern projects under development in the Southwest and all should be eligible for the Advanced Manufacturing Production tax credit included in the Inflation Reduction Act (IRA).

“The outlook for our wind business remains favorable, reflecting rising demand for access to clean energy. Since the passage of the Inflation Reduction Act, we have received wind tower orders in excess of USD 1.1 billion,” Carrillo stated.

(USD 1.0 = EUR 0.933)