Elecnor Expands in Aerospace Industry

Elecnor Expands in Aerospace Industry

Elecnor Expands in Aerospace Industry

Spanish infrastructure, technology and renewable energy group Elecnor has recently strengthened its position in the European aerospace industry via a strategic alliance with Canadian firm UrtheCast.

The 76.4 million euro agreement with UrtheCast will boost its growth plans for satellite construction, allowing its Elecnor Deimos division to enter new space sector markets.

The deal includes the sale of Elecnor’s two Earth observation satellites, Deimos-1 and Deimos-2 to UrtheCast. Elecnor will become a strategic partner of the Canadian company’s “Constellation” programme for satellites development.

UrtheCast is a Vancouver-based technology company which is developing the world’s first Ultra HD video feed of Earth, streamed from space in full colour.

GLOBAL COMPANY WITH DIVERSIFIED FUNDING

A truly global company, Elecnor has a presence in more than 40 countries across a wide range of industries including electricity, gas, railways, construction and telecommunications.

One of the secrets to its successful expansion drive has been its strategy of diversifying its financing, which was particularly important during the global crisis.

Agreements like the one established with UrtheCast – where a strategic partner buys Elecnor’s technology and/or a stake in one of its subsidiaries – has proven to be a smart way to finance growth in different industries.

In 2014, Elecnor teamed up with Dutch group APG to develop power transmission projects in Latin America. APG took a stake in Celeo Redes, a subsidiary of Elecnor’s concessionaire Celeo. Shortly after, Elecnor, through its wind energy development subsidiary, Enerfin, finalised the deal announced in June with Canadian fund Eolectric Club Limited Partnership taking a 49% stake in the 100 MW L’Érable wind farm, located in Quebec (Canada).

The Spanish company also has recourse to traditional financing and earlier this month signed a new contract to modify several of the conditions of the 600 million euro syndicated loan it took out in July 2014.

SPANISH PIONEERS OF INDUSTRY

One of Elecnor’s most important projects over the last two decades has been its work on the electrification of the grid for Spain’s high-speed (AVE) train system, the world’s second-largest after China.

In the energy sector, it has become a benchmark developer and contractor both at home and abroad, undertaking projects in wind energy, solar photovoltaic and solar thermal.

So Elecnor is another example of a Spanish company which has become a pioneer of industry overseas. Iberdrola, the world leader in renewables, and infrastructure group Acciona, which operates in over 30 countries, are two other examples.

As Spain’s economy continues to recover and investment in key sectors like technology and renewable energy picks up again, companies like Elecnor will continue to drive innovation across the world.

For more information on investment in Spain, contact corporate law firm Argali Abogados.

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