Vestas Sells Converters and Controls Business to KK Wind Solutions to Boost Wind Energy Supply Chain
Vestas and KK Wind Solutions (KK) have signed a deal for the acquisition of Vestas' converters and controls business, which includes the three converters and control panel facilities in Denmark, India, and China, and associated staff functions.
Vestas is constantly looking for partners who can assist it in effectively focusing on its core business and helping scale renewables efficiently in the long term. Around 600 Vestas employees are in scope to be part of KK.
As part of the deal, KK will sell converters and control panels exclusively to Vestas from its three facilities, while the agreement enables the opportunity for local expansion and employment growth by extending the usage of converter technology to areas adjacent to Vestas' main business.
In addition, the agreement between Vestas and KK involves the cooperative development of converters by a Vestas engineering team wholly committed to the relationship. The partnership is the culmination of years of collaboration between KK and Vestas, most recently illustrated by the localisation of offshore power conversion modules and low-voltage cabinets in Taiwan.
Tommy Rahbek Nielsen, Executive Vice President and COO at Vestas, said:
"Across our global supply chain footprint, we are increasingly collaborating with partners to scale efficiently and build on the foundations we have established. This includes focusing our own resources to where they are most efficient and moving parts of our business to be run by other industry leaders who can create more value and secure additional long-term jobs. I’m therefore very excited about the agreement with our partner KK Wind Solutions, which can help grow and mature the wind energy supply chain."
Mauricio Quintana, Chief Executive Officer, KK Wind Solutions, said:
"As an established partner to Vestas, we aim to take a leading role in maturing the industry's supply chain and accelerating the green energy transition. The acquisition will bring immediate scale to our operations and extend our global footprint while adding new competencies by welcoming over 600 highly skilled and experienced employees. As a result, we will be well-positioned to develop and deliver world-class sustainable energy solutions to top-tier wind OEMs and expand further into adjacent industries, such as Power-to-X."
Source: Vestas
