TPI Composites to sell automotive ops to focus on wind

US composite wind blades maker TPI Composites Inc (NASDAQ:TPIC) has agreed to sell its automotive business to local investment firm Clear Creek Investments LLC (CCI) as part of its continued focus on its core business in the wind market.

The unit to be offloaded supplies composite structures and components for automotive markets, including passenger automotive, bus, truck and delivery vehicle applications.

The financial details of the transaction, which comes after a thorough strategic review of options, were not disclosed. The divestiture is anticipated to improve monthly cash flow by about USD 1.7 million (EUR 1.58m) over the balance of 2024, TPI noted in a press statement on Monday.

Upon completion, expected on June 30, CCI intends to rename the acquired business to Senvias.

“We are proud of the progress that the automotive team has made in growing this business and developing innovative solutions for the transportation market and are confident that CCI will provide the new capital and focus to enable the Automotive business to grow and serve its customers in the electric vehicle market,” TPI Composites’ CEO Bill Siwek said.

Scottsdale, Arizona-based TPI Composites was established in 1968. The company has been providing composite wind blades since 2001. It accounted for about 33% of all onshore wind blades on a MW-basis globally, excluding China, in 2023, according to a recent Wood Mackenzie report, as quoted on the company’s website.

(USD 1 = EUR 0.934)

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