Published: 10 August 2022 10 August 2022
Vestas has signed an agreement with KK Wind Solutions (KK) for the acquisition of Vestas’ converters and controls business, which includes Vestas’ three converters and control panels factories in Denmark, India and China and associated staff functions. In total, around 600 Vestas employees are in scope for being part of KK.
As part of the agreement, KK will exclusively supply converters and control panels to Vestas from the three factories, while the agreement enables potential for local expansion and job growth by extending the use of converter technologies in areas adjacent to Vestas’ core business. Furthermore, the agreement between Vestas and KK includes joint development of converters with an engineering team at Vestas fully dedicated to the partnership.
Vestas’ converter and control panel factory in Hammel, Denmark employs around 280 people and Vestas’ converter factory in Oragadam, India employs around 50 people. In addition, Vestas owns a nacelle and hub assembly plant next to the converter factory in Oragadam, which will continue its operations as today. Vestas’ converter factory in China employs around 220 people and is part of Vestas’ manufacturing compound in Tianjin.
The transaction is expected to close in the first quarter of 2023, subject to receipt of approvals from the relevant regulatory authorities and separation of the converters & controls business, at which point the transaction will be reflected in Vestas’ financial accounts.