CORRECTED-(OFFICIAL)-UPDATE 2-REpower plans capacity expansion

(REpower corrects Martifer's voting rights in REpower to 23 percent, not 25.4 percent, in penultimate paragraph of story published on March 31.)

FRANKFURT, March 31 (Reuters) - Wind turbine maker REpower (RPWGn.DE) plans to more than double its production capacity in the next two years to handle further strong growth, especially in Europe and North America, it said on Monday.

REpower, whose major shareholder is India's Suzlon Energy (SUZL.BO), the world's number four wind turbine maker, confirmed its outlook for its fiscal year 2008/09, starting on April 1, which it had raised earlier this month due to a strong order backlog.

It expects sales to rise to 1.1 billion euros ($1.7 billion) in the year ending March 2009 with an operating margin of 5.5-6.5 percent. It sees further sales growth of 40-50 percent for 2009/2010 with rising margins, it said.

Demand for renewable energy is booming as climate-change concerns mount and oil prices hover near record highs.

REpower, which competes with the world's leading wind turbine maker Vestas (VWS.CO), units of global power generation giants Siemens (SIEGn.DE) and General Electric (GE.N) and Spain's Gamesa (GAM.MC), sees particularly strong growth in Europe and North America, it said.

REpower plans to more than double its production capacity in the next two years from 1,300 megawatt (MW) now, investing 86 million euros ($135.7 million) in 2008/2009.

This would not let REpower pay a dividend to shareholders for now, finance chief Pieter Wasmuth said.