Suzlon Energy Limited, makers of windmills, announced the acquisition of the second largest wind energy and industrial gear box maker, Belgium-based Hansen Transmissions International NV for USD 565 million. The deal comes at a great time with wind energy applications, mainly driven by China, US, and India, are growing at 45%.

With this backward diversification, Suzlon can now leverage Hansen’s gearboxes to derive cost, design, development timeline, and technological advantages. Besides, it now gives Suzlon European market access and be able to compete with larger rivals such as General Electric, Vestas of Denmark, and Siemens of Germany.

Hansen is engaged in design, developing, manufacturing, and supplying industrial wind turbine generator gearboxes. It has subsidiaries in the UK, Australia, Brazil, US, and South Africa.

The Kyoto Protocol requires industries in EU, Australia, and South Korea to reduce emissions and wind energy is a clear way to reduce pollution and global warming.