Abengoa (MCE: ABG.B/P SM) (NASDAQ: ABGB) has been selected by Gerdau (Sipar Aceros S.A.) for a new power transmission project in central Argentina that will supply electricity to a new steel plant. The project is worth $27.2 million. Abengoa will not retain an interest in the constructed assets.
Abengoa will be responsible for the procurement, construction, testing and commissioning of six kilometers of 220 kV double-circuit line, the extension of the Rosario Oeste transformer station and construction of a new 220 kV transformer station. The works will be carried out at sites close to the city of Perez, Santa Fe, and the project is expected to be completed within 12 months.
This is the third transmission project that the company has won in Argentina in the last quarter of 2014, bringing the total to more than 5,000 km of lines and 40 substations.
This new project will further strengthen Abengoa's experience of transmission lines, consolidating its leadership position in this sector around the world, in which it has more than 45,000 km in these types of transmission projects as well as developing power transport infrastructures.