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Vestas is always looking for partners who can help us keep our strategic focus on core business and scale renewables effectively over the long-term. Vestas signed an agreement to acquire Vestas’ converters & controls business from KK Wind Solutions (KK). This includes Vestas three converters, control panels factories in China, India, and Denmark as well as associated staff functions. Around 600 Vestas employees will be able to join KK.
KK will supply Vestas with only converters and control panels from its three factories. The agreement also allows for potential local expansion and job growth through the extension of converter technology use in areas near Vestas’ core businesses. The agreement between Vestas, KK and Vestas includes joint development of converters by Vestas’ engineering team. This agreement is a result of years of cooperation between Vestas and KK, which was most recently demonstrated by the localisation of low voltage cabinets and offshore power conversion modules in Taiwan.
“Across our global supply chains footprint, we are more likely to collaborate with partners to scale efficiently. This will allow us to build on the foundations that we have already established. This means directing our resources where they are most effective and moving parts of the business to industry leaders who can add value and create long-term jobs. Tommy Rahbek Nielsen (Executive Vice President, COO of Vestas) says that he is excited about the agreement with KK Wind Solutions. This partnership can help develop and mature the wind power supply chain.
Vestas is a trusted partner and we plan to play a major role in the development of the industry’s supply chains and the acceleration of the green energy transition. This acquisition will give us immediate scale and expand our global footprint. It will also allow us to hire over 600 highly-skilled and experienced employees. We will therefore be well-positioned to deliver world-class, sustainable energy solutions to top-tier wind OEMs as well as expand into adjacent industries like Power-to-X,” says Mauricio Quintana Chief Executive Officer of KK Wind Solutions.
The three factories producing control panels and converters
Vestas has a converter and control panel factory at Hammel in Denmark, which employs approximately 280 people, and a converter factory at Oragadam in India, which employs about 50 people. Vestas also owns a hub and nacelle assembly plant right next to the converter facility in Oragadam. These will continue their operations as they are today. Vestas has a converter factory in China that employs approximately 220 people. It is located in Tianjin, part of Vestas manufacturing compound.
Subject to receiving approvals from the relevant regulatory agencies and the separation of the converters-& controls business, the transaction should close in the first quarter 2023.