Daewoo Shipbuilding and Marine Engineering has struck a deal to establish a joint venture to build wind power generators with the provincial government of Nova Scotia, Canada.

The shipbuilder plans to invest up to US$20 million and hold a 51 percent stake while the Canadian province will take up the rest of the shares and contribute around $19 million.

The deal is being hailed as a stepping stone to diversifying the wind energy sector and to expanding further into the North American market.

One of the biggest shipbuilders in the world, Daewoo acquired DeWind, a U.S. wind turbine manufacturer, in 2009 and has won contracts to build generators in the U.S.