30 April 2018
The annual result is lower than expected due to a large price drop in wind turbine prices in the entire supply chain. However, the challenges brings a bright future where green energy is beating black energy sources.
KK Wind Solutions Holding ApS* presented its annual report for 2016-17 on the 30th of April 2018.
Even though KK Wind Solutions experiences continuous growth across the customer base, profit margins have been reduced as a result of challenging market conditions. This past year, we saw a significant reduction in renewable energy prices, resulting in a downward price pressure impacting many industry suppliers, including KK Wind Solutions.
With an annual result of DKK -6.4 million the results are below expectations, but are also reflecting KK Wind Solutions’ commitment and investment in delivering the competitive solutions that the industry needs.
“The current market challenges has inevitably impacted our short-term results, but also brought a lot of opportunities and growth as wind energy becomes one of the most competitive energy sources in the world. We strongly believe that our strategy and customer cooperation will lead us to new opportunities and a continued bright future,” says Chlinton A. Nielsen, CEO, KK Wind Solutions.
Adapting to change
Changing market conditions created a need for cost optimisation throughout the KK Group. This has been achieved by a strong focus on automation and robotics, combined with digitalisation and globalisation of a number of areas within the organisation.
In 2017, we established KK Wind Solutions India Pvt. Ltd in Bangalore, India, and acquired Bonfiglioli’s control cabinet activities in India. With the acquisition, we have significantly enhanced our presence in Asia, while adding production and engineering capacity.
By investing in tomorrow’s technologies and improving our efficiency and global footprint, we now hold a stronger competitive position than previous years.
A bright future as a leading systems supplier
We continuously develop strong partnerships with existing customers while entering partnerships with new customers in order to maintain a diversified customer portfolio. During 2017, we experienced a significant increase in new customers and business across our locations.
“We are seeing a growing realisation of outsourcing strategies from turbine manufacturers in order to lower cost and complexity in the supply chain. With our technology expertise in electrical systems and global manufacturing capabilities, we are an attractive partner to many of them,” says Chlinton A. Nielsen, and continues:
“Being a part of a very competitive wind industry and having increased our organisational efficiency and global footprint, we are in good shape to capture future growth opportunities together with our customers.”
Kenneth Damm Hansen
Marketing & Communication Specialist
Phone: + 45 2476 3799
* KK Wind Solutions Holding ApS is the parent company of the KK Group established on 11th November 2016.
A bright future despite challenging market conditions