16 April 2019
KK Wind Solutions realise a positive annual result through the new strategy. Furthermore, the effects of a changing industry bring new technology opportunities by accelerating customer outsourcing strategies.
KK Wind Solutions Holding ApS* presented its annual report for 2018 on the 4th of April 2019.
In 2018, KK Wind Solutions experienced further growth and diversification in the customer base. Profit margins remain under pressure in the supply chain as a result of market conditions and KK Wind Solutions’ commitment to deliver the competitive solutions that the industry needs.
With an annual result in 2018 of DKK 25 million compared to DKK -6,4 in 2016/17 the results are as expected and reflecting the impact of the structural cost optimisations throughout the company called Best Shape.
The price pressure in the supply chain is still impacting the financial results, but are also bringing new opportunities and growth potential as wind energy becomes one of the most competitive energy sources in the world.
“We have during the last years decided to implement structural changes based on the cost structures we predict needed 5 years ahead. This has generated a very strong competitiveness for KK in 2018 and secured +20% growth for 2019,” says Chlinton A. Nielsen, CEO at KK Wind Solutions and continues:
“We are confident that our strategic direction and initiatives in technology, digitalisation and industry 4.0 combined with a competitive footprint will enable us to capture future growth opportunities together with our customers.”
Maintaining the competitive edge
Continuously keeping a competitive edge is essential to success in this industry and remain the preferred partner for our customers. During 2018, several activities were initiated to ensure that the competitive advantage was sustained and further increased.
Among other initiatives, KK Wind Solutions structurally changed its organisational footprint as well as increased the activity level in the production facility in India and continued the efforts within safety, industry 4.0, robotics and digitalisation of the entire company.
Furthermore, a range of new technologies and products have been developed within converter systems and controls, software algorithms, electrical pitch systems, uninterruptable power supplies and storage solutions, which brings KK Wind Solutions at the forefront of newest wind turbine technologies.
“By continuously investing in technology and improving operational efficiency, we can sustain our strong competitive position. Over the next years, we will double our technology investments based on our expanding customer agreements” says Chlinton A. Nielsen.
Realisation of outsourcing strategies
During 2018, we experienced a significant increase in new customers and business across our locations.
“We are seeing a growing implementation of outsourcing strategies from wind turbine manufacturers in order to capture the gains from stronger price competitiveness and reducing complexity in the wind supply chain. With our technology expertise in electro-mechanical systems and global manufacturing capabilities, we are an attractive partner to many of them,” says Chlinton A. Nielsen, and continues:
“Despite the continued price pressure, we expect a significant growth in 2019 of + 20%. The positive expectations are based on the strong results from the current strategy, where the increased competitiveness of KK has generated many new customers and orders.”
Sustainability - 100% Electricity from Renewables
Sustainability and social responsibility is a part of KK Wind Solutions’ DNA and strongly embedded in the way we operate and govern the company. We enable a sustainable future through our products, responsible business practices and reduced environmental impact.
“To further reduce the environmental impact of our operations and support the wind industry, we are currently restructuring our power supply to ensure that our global electricity consumption is covered 100% by wind power or other renewable energy sources,” says Chlinton A. Nielsen, and continues:
“Going forward, we will continue our sustainability journey by setting ambitious targets and by influencing our stakeholders and suppliers.”
To get an complete overview of efforts, focus areas and sustainability results for the past year and goals for the coming period, please view the full CSR Report 2018.
* KK Wind Solutions Holding ApS is the parent company of the KK Group.
Kenneth Damm Hansen
Marketing & Communication Manager
Phone: + 45 2476 3799
A changing industry brings new growth opportunities