Končar, Siemens Energy launch new joint venture

Croatian firm Končar has signed an agreement with Siemens Energy on the establishment of Končar – Transformer Tanks (KTK). The joint venture will focus on manufacturing transformer tanks.

The strategic alliance aims to significantly boost manufacturing capacities, streamline the sale of a portion of future capacity to Siemens Energy, foster the mutual exchange of knowledge and expertise, mitigate risks, and substantially enhance the global supply of transformer tanks, Končar said.

It revealed it would hold a 60% stake in KTK, with Siemens Energy owning the remainder.

Končar said the unprecedented surge in demand for transformers is one of the most significant outcomes of the energy transition, stressing that it is gaining full traction across the European Union.

Kolak: The collaboration will result in a state-of-the-art manufacturing facility for transformer tanks

Transformer tanks are vital components in the process, the Croatian company added. The collaboration will result in a state-of-the-art manufacturing facility at its site in Sesvetski Kraljevec, the announcement reads.

Gordan Kolak, President of the Management Board of Končar, said the launch of the new joint venture with Siemens Energy marks a historic milestone.

“This collaboration enhances our crisis resilience, speeds up operational efficiency, and boosts effectiveness in related sectors. In this way, we are paving the path for substantial business growth and securing long-term, safer, and improved working conditions for our employees,” Kolak stressed.

Holt: Future facility will produce around 160 large power transformer tanks per year

According to Tim Holt, member of the Executive Board of Siemens Energy AG, transformers are the backbone of the electrical grid. The steel tanks housing them are more than just protective shells, in his words. They increase the reliability, safety and longevity of the critical equipment, the company official explained.

“This future facility will produce around 160 large power transformer tanks per year – enough to support 2.4 million households with energy annually. Končar was a natural partner for us – they have the expertise to produce high-quality equipment smoothly and swiftly and we are delighted to continue our strong relationship,” he said.

Končar, founded in 1921, originally had Siemens as its founding owner. The partnership was renewed in 1994 with the establishment of the joint company Končar – Power Transformers. Siemens (now Siemens Energy) holds a 51% stake and Končar 49%. Končar – Power Transformers is one of the world’s leading manufacturers of large power transformers, Končar said.