Dallas-based infrastructure manufacturer Arcosa (NYSE: ACA) said today that it’s received $750 million worth of wind turbine tower orders, so it’s building a new factory where it can make them.
The majority of the company’s wind turbine tower orders will support wind energy projects currently under way in the US Southwest, so that’s why it will build its new factory in Belen, New Mexico, southwest of Albuquerque.
As of 2022, New Mexico had 4,235 megawatts of installed wind capacity, which powers 35% of its electric grid.
Arcosa plans to invest $55-60 million to buy a property in the Rio Grande Industrial Park. It will modify the existing plant and procure the necessary equipment for the new factory, which is expected to create around 250 jobs.
Governor Michelle Lujan Grisham (D-NM) said:
The transition to clean energy brings with it more diversified, higher-paying, and skilled jobs.
Arcosa is repurposing an old factory for new investments in our state and our communities – this is a win-win.
The $750 million worth of new orders are expected to be eligible for the Advanced Manufacturing Production tax credit included in the Biden administration’s Inflation Reduction Act.
The state of New Mexico is contributing $4 million from its Local Economic Development Act job-creation fund to the fit-out of the new factory. The city of Belen is going to contribute to the project with Industrial Revenue Bonds.
The project is expected to have an economic impact of $314 million over the next 10 years.
Antonio Carrillo, Arcosa’s president and CEO, said:
We look forward to expanding our manufacturing capacity to New Mexico, where market demand for new wind projects is robust. Our new facility will strengthen our position in the wind tower market and enable Arcosa to benefit from growing wind investment in the Southwest.
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 $1.1 billion.
Production of Arcosa’s New Mexico factory is expected to begin in mid-2024, and current orders will provide Arcosa’s new factory with a healthy level of backlog through 2028.
Read more: Wind, solar, batteries make up 82% of 2023 utility-scale US pipeline
UnderstandSolar is a free service that links you to top-rated solar installers in your region for personalized solar estimates. Tesla now offers price matching, so it’s important to shop for the best quotes. Click here to learn more and get your quotes. — *ad.
FTC: We use income earning auto affiliate links. More.