Vestas to strengthen wind energy supply chain with sale of converters and controls business to KK Wind Solutions
News release from Vestas Wind Systems A/S
Aarhus, 10 August 2022
Vestas continuously looks for partners that can support our strategic focus on our core business and help scale renewables efficiently in the long-term. To continue this development, Vestas has signed an agreement with KK Wind Solutions (KK) for the acquisition of Vestas’ converters and controls business, which includes Vestas’ three converters and control panels factories in Denmark, India and China and associated staff functions. In total, around 600 Vestas employees are in scope for being part of KK.
As part of the agreement, KK will exclusively supply converters and control panels to Vestas from the three factories, while the agreement enables potential for local expansion and job growth by extending the use of converter technologies in areas adjacent to Vestas’ core business. Furthermore, the agreement between Vestas and KK includes joint development of converters with an engineering team at Vestas fully dedicated to the partnership. The agreement builds on years of collaboration between KK and Vestas, most recently exemplified by localisation of offshore power conversion modules and low voltage cabinets in Taiwan.
“Across our global supply chain footprint, we are increasingly collaborating with partners to scale efficiently and build on the foundations we have established. This includes focusing our own resources to where they are most efficient and moving parts of our business to be run by other industry leaders who can create more value and secure additional long-term jobs. I’m therefore very excited about the agreement with our partner KK Wind Solutions, which can help grow and mature the wind energy supply chain”, says Tommy Rahbek Nielsen, Executive Vice President and COO at Vestas.
“As an established partner to Vestas, we aim to take a leading role in maturing the industry's supply chain and accelerate the green energy transition. The acquisition will bring immediate scale to our operations and extend our global footprint, while adding new competencies by welcoming over 600 highly skilled and experienced employees. As a result, we will be well-positioned to develop and deliver world-class sustainable energy solutions to top tier wind OEMs and expand further into adjacent industries, such as Power-to-X”, says Mauricio Quintana, Chief Executive Officer, KK Wind Solutions.
About the three converters and control panels factories
Vestas’ converter and control panel factory in Hammel, Denmark employs around 280 people and Vestas’ converter factory in Oragadam, India employs around 50 people. In addition, Vestas owns a nacelle and hub assembly plant next to the converter factory in Oragadam, which will continue its operations as today. Vestas’ converter factory in China employs around 220 people and is part of Vestas’ manufacturing compound in Tianjin.
The transaction is expected to close in the first quarter of 2023, subject to receipt of approvals from the relevant regulatory authorities and separation of the converters & controls business, at which point the transaction will be reflected in Vestas’ financial accounts.
For more information, please contact:
Kristian Holmelund Jakobsen
Communication and Press Officer
Tel: +45 5221 1467
About KK Wind Solutions
Building on more than 40 years of experience, KK Wind Solutions is a strong partner in electro-mechanical systems for wind turbines. KK’s capabilities span development of state-of-the-art technologies, high-quality lean manufacturing, flexible aftermarket solutions and advanced monitoring services. KK Wind Solutions is owned by A.P. Moller Holding which is the parent company of the A.P. Moller Group, which was established in 1904 by Arnold Peter Møller.
Vestas is the energy industry’s global partner on sustainable energy solutions. We design, manufacture, install, and service onshore and offshore wind turbines across the globe, and with more than 154 GW of wind turbines in 87 countries, we have installed more wind power than anyone else. Through our industry-leading smart data capabilities and unparalleled more than 133 GW of wind turbines under service, we use data to interpret, forecast, and exploit wind resources and deliver best-in-class wind power solutions. Together with our customers, Vestas’ more than 29,000 employees are bringing the world sustainable energy solutions to power a bright future.
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