Fund Manager for FIEX, COFIDES has extended a 9.54 million joint-venture loan to the GONVARRI Group´s Brazilian subsidIary to establish a new productive plant in the country.

Located in the state of Pernambuco, the new plant manufactures steel towers for wind turbines. The total investment of the porject amounts to 25 million euros and it is expected to create more than 200 jobs over the next five years.

Thus, GONVARRI expects to supply the Brazilian market, which is becoming increasingly attractive for a wide range of reasons such as the market size, the excellent wind resource in the country and, during the last years, the steady increase of electricity generated from wind power.

This increase is mainly due to PROINFA, the Programme of Incentives for Alternative Electricity Sources implemented by the Bazilian Government in 2002. PROINFA is made up of two stages and its main target is to increase renewables’ share of energy consumption. The first stage, which ends on 31st December 2010, will have intoduced 1,400 MW.

Established more than 50 years ago, GONVARRI is currently one of the European leaders in Steel Service Centres. The Group operates in steel, automotive components, storage and logistics. GONVARRI owns two additional productive plants in Brazil, besides those located in Portugal, Poland, Germany, Slovakia, Russia, India, Mexico and Argentina.