02 March 2016
Withdrawal from Chinese joint venture allows a more focused effort on more profitable markets for KK Wind Solutions.
KK Wind Solutions presented its annual report for FY 2014-15 on the 1st of March 2016. Looking back, it has been a good year.
With an annual result of DKK 178.7 m before tax compared to DKK 104 m the previous financial year, the KK group shows a good and stable development. However, out of the DKK 178.7 m, DKK 75 m have been realised partly through the withdrawal from the Chinese joint venture company Chongqing kk-Qianwei Windpower Equipment Co. Ltd. since, for the time being, the group has chosen to put its main focus on other markets with larger potential for the KK group. In addition to this, the sale of the subsidiary ELOCIC A/S has contributed to the increase in annual result.
The sale of ELOGIC A/S together with the exit from the Chinese joint venture mean that the KK group has intensified its focus on strategic key markets, which thereby provides a solid take-off for the ambitious growth plans the coming years.
Growth via the service market
Declining wind energy prices cause reduction in public subsidies to wind energy. Hence, full attention is put on solutions that reduce the cost of establishing and operating wind parks. Consequently, the KK group established a service company in 2015 in order to increase focus on service and upgrades of existing wind power plants.
“We have significant ambitions of growth – especially within the service area. Moreover, we focus a lot on innovation and business development. However, with the ambitious, still realistic plans we have made for the next three-year period, I am sure we will reach our targets,” says Tommy G. Jespersen, CEO, KK Wind Solutions, and continues:
”A couple of years ago, we changed gears from being a component supplier to being a systems supplier. This upscaling can of course be seen in the turnover. Now we prepare for the next gear change.”
The KK group expects an increase in turnover in the FY 2015/16 but with an annual result on par with 2014/15 due to pressure on the margins.
Carina Britorn Vestergaard
Marketing & Communication Manager
Phone: + 45 5122 3949
KK Wind Solutions scales down focus on China