Carbone Lorraine SA, a French maker of electric motor parts, raised its 2011 sales target on a plan to raise production of graphite and other components for solar and wind energy equipment.
Renewable energy is a “historic opportunity'' for the company, Chief Executive Officer Jean-Claude Suquet told reporters on a conference call today. Sales from the power generation and distribution markets will increase to 30 percent of group revenue by 2012 from 13 percent last year, the Paris- based company said in an e-mailed statement. The company is targeting 2011 sales of 1.1 billion euros ($1.6 billion).
Carbone-Lorraine plans to spend 220 million euros from 2009 to 2011 in part on raising production capacity, about half of which will be on renewable energy, the company said. It also plans to invest 200 million euros on “selective and profitable'' acquisitions between 2008 and 2011.
The company is in “talks'' on possible acquisitions before the end of the year that would boost growth, Suquet said.
Carbone Lorraine returned to profit in 2004 after cutting jobs and reducing manufacturing costs by moving production from France to Asia. It's expanding in India and China, which accounted for up to 9 percent of sales last year. The latest expansion will be financed by recently renegotiated credit lines and a capital increase, the company said.
