KK Wind Solutions to acquire Vestas' converter & controls business
The transaction will enable KK Wind Solutions to extend its global footprint and become the world’s leading converter manufacturer for Wind.
KK Wind Solutions has signed an agreement to acquire the converter & controls business from Vestas, including three converter and control panels factories located in Hammel (DK), Oragadam (IN) and Tianjin (CN). In addition, Vestas and KK Wind Solutions have agreed to jointly develop converters with both companies’ engineering teams fully dedicated to the partnership. In total, KK Wind Solutions will be welcoming over 600 highly experienced and skilled employees after closing.
"The acquisition will bring immediate scale to our operations and significantly grow our business. By expanding our manufacturing footprint to China and strengthening our operations in Asia and Europe, we will be able to better serve our customers globally. The acquisition also complements our recently established Centre of Excellence for power conversion in Kempen, Germany. We are 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.
For the renewable energy transition to accelerate in pace, the industry needs to rapidly mature and scale up. As a global leader in sustainable energy solutions, Vestas aims to evolve the business by focusing on core areas of expertise and expanding partnerships with specialised supply chain partners to develop further. As an established strategic partner to Vestas, KK Wind Solutions aims to drive and take a leading role in maturing the industry's supply chain and ultimately accelerate the green energy transition.
"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 & COO, Vestas.
As part of the agreement, KK Wind Solutions will gain exclusivity in supplying converters and controls to Vestas, 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. The agreement builds on years of collaboration between KK Wind Solutions and Vestas, most recently exemplified by localisation of offshore power conversion modules and low voltage cabinets in Taiwan. KK Wind Solutions and Vestas will agree upon several transitional service agreements to be activated after closing to ensure business continuity and a seamless transfer of knowledge and operation.
The transaction is subject to approval by the relevant regulatory and anti-trust authorities and is expected to close in the first quarter of 2023.
For more information, please contact:
Kenneth Damm Hansen
Director - Marketing & Communication
Phone: +45 24 76 37 99
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.
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. Our 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.