21 April 2023
In 2022, KK Wind Solutions continued its growth journey with increased order intake and consolidation of its position as a Tier 1 supplier to the wind industry with the acquisition of the Vestas converter and controls business.
KK Wind Solutions delivered a financial year revenue of DKK 2,581m in 2022, an increase of 1.2% from 2021. Order intake ended with a 34% increase compared to the beginning of the year, a result of its close collaboration with customers and suppliers to address the industry-wide supply chain challenges. The result after tax ended at a loss of DKK 144m, negatively impacted by the component and materials shortages, plus the inflationary pressure that persisted throughout the year and significant costs related to acquisitions.
In June 2022, KK Wind Solutions acquired the R&D department from ConverterTec GmbH, gaining an IP portfolio and highly skilled employees with advanced competencies in power conversion. With the acquisition, KK Wind Solutions established a Centre of Excellence for power conversion in Kempen, Germany. In August 2022, KK Wind Solutions signed its largest acquisition ever with the purchase of Vestas’ converter & controls business. The transaction, which doubles the size of KK Wind Solutions, closed in February 2023.
Both acquisitions have enabled KK Wind Solutions to take a leading role in accelerating the transition towards renewable energy sources. For 2023, revenue is expected to exceed DKK 5,000m.
“It has been a transformational year for our company, with two large acquisitions doubling our size and cementing our position as a leading converter manufacturer. We have added skilled employees, capabilities and expertise to our business that allows us to provide top-tier wind OEMs with the best power conversion products and solutions, as well as expanded our manufacturing footprint in Asia and Europe,” says Mauricio Quintana, CEO at KK Wind Solutions. And continues:
“Financially, 2022 was impacted by the industry-wide challenging market conditions, including supply chain issues and inflationary pressure, which resulted in a financial performance below our expectations. However, I am proud of the teamwork and dedication displayed by all employees to help find alternative and timely solutions for our customers,” says Mauricio Quintana, CEO at KK Wind Solutions.
Despite the short-term challenges, the wind industry’s outlook remains positive, especially in offshore wind, where KK Wind Solutions is well positioned and where installations are expected to experience exponential growth from 2025 to 2030.
The war in Ukraine
The past year’s events cannot be discussed without acknowledging the war in Ukraine. With over 400 Ukrainian employees predominantly working out of the Polish production facility, it is essential to recognise the war that transpired in February 2022.
“We are deeply saddened that the war has continued for this long. We have supported our Ukrainian colleagues as much as possible, assisting those affected by the conflict with the possibility to take time off work and to assist relocating family members; we arranged transportation, organised food donations, arranged accommodation and repatriation for those in need,” says Mauricio Quintana and ends:
“We are truly inspired by the strength demonstrated by our Ukrainian colleagues in the face of such challenging circumstances.”
KK Wind Solutions doubling in size through acquisitions