After California-based Clipper Windpower chose Cedar Rapids in April 2005 as the location for its wind turbine assembly plant and Acciona Energia of Spain chose West Branch in 2007 for a plant to assemble wind turbines, there were rosy predictions that Iowa was poised to become a world leader in renewable energy. Local and state economic development representatives pursued domestic and global suppliers of blades, generators, towers and other components.
Clipper Windpower ramped up employment at its plant, 4601 Bowling St. SW, hiring about 390 people to assemble the company’s 2.5-megawatt Liberty wind turbines. In January 2009, the Carpinteria, Calif.-based company furloughed 90 of its 830 global employees as orders for wind turbines fell due to tight credit markets and a weakened world economy.
By the end of the third quarter of 2010, Clipper Windpower faced serious operating cash problems due to lower deposits and progress payments from customers under new and existing orders. The company’s consolidated cash position had fallen nearly 40 percent from the end of June, leaving it with $80 million to finish pending turbine orders and pay ongoing operating expenses.
Connecticut-based United Technologies Corp., which owned a 49.9 percent share of Clipper, bought all the remaining shares in December. Analysts believe the buyout will give Clipper Windpower the financial stability it needs for continued growth as well as leverage United Technologies’ blade, turbine, and gearbox design technology.
“United Technologies wants to grow the company,” said Mary Gates, Clipper director of global communications. “We are seeing an improvement in the wind turbine market,” Gates said. “We have delivered turbines to customer sites in the United States and Mexico since June 30.”
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