RERMAG

Aggreko Confirms Plans to Spend Additional £30 Million on Equipment

Power generation and temperature control equipment specialist Aggreko confirmed this week that it plans to spend an additional £30 million (about U.S. $48 million) on equipment based on strong international demand for equipment. The planned spend marks the second time Aggreko has increased its demand-based spending in 2011, following a £70 million increase in April.

Aggreko said its international power projects division now accounts for 44 percent of the company’s revenue, compared with about 29 percent five years ago. Aggreko said that international demand grew 22 percent in the first half of this year alone, while local business jumped 17 percent. The company said it now expects underlying profits for the year to be better than the 20 percent it predicted in April, although that additional profit may be partially offset by the weak dollar.

The Glasgow, Scotland-based company, which has its U.S. headquarters in Houston, continues to excel in the large athletic events business, having provided power to the soccer World Cup in South Africa in 2010, the Vancouver Winter Olympics and the upcoming 2012 London Olympic Games, for which Aggreko has a £37 million contract.

Aggreko North America is No. 6 on the RER 100.

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