Daewoo Shipbuilding Looks to Diversify, Considers Wind Turbine Expansion

A Bard 5.0 nacelle wind turbine bard holding
A Bard 5.0 nacelle

SEOUL (Dow Jones)–Daewoo Shipbuilding & Marine Engineering Co. (042660.SE) said Monday it is considering acquiring German wind-turbine maker Bard Holding GmbH as it seeks a new growth engine amid sluggish demand in the shipbuilding industry.

Daewoo Shipbuilding is interested in the German company, but has yet to conduct due diligence on it, an official at the South Korean company told Dow Jones Newswires.

“We have not decided yet whether to buy a stake or the entire company,” he added.

Bard has hired J.P. Morgan as the manager of the sale, he said.

South Korean online news provider MoneyToday reported Monday that Daewoo’s potential competitors in the acquisition include General Electric Co. (GE) and some Chinese companies, and that Bard hopes to complete a deal by early 2012.

In August 2009, Daewoo Shipbuilding bought U.S.-based DeWind Inc., an affiliate of electric wire company Composite Technology Corp. (CPTCQ), for $50 million, marking its entry into the wind-power business.

Daewoo said at the time it aimed to become the world’s No. 3 wind power equipment maker with a market share of 15% by 2020.

-By Kyong-Ae Choi, Dow Jones Newswires