Končar plans to grow next year on the wings of digitalization and exports to new markets

The regional leader in the field of electrical engineering and rail vehicles, the Končar Group estimates that it will end the business year 2021 with the highest sales revenue to date, amounting to over 3.5 billion kuna. In addition to being a fitting end to a year in which Končar celebrated its 100th anniversary of operation and achieved historic business breakthroughs, it is also a significant announcement of what is to come in the following year.  

As announced at an online briefing with journalists, Končar plans further growth in 2022, achieving sales revenue of products and services amounting to 3.78 billion kuna. One of the key focuses will be on digitalization, the use of the latest technologies, sustainability, and reducing environmental impact. Exports will continue to have a high share, above 60 percent, in total revenues.

Reflecting on the past year, Končar’s CEO Gordan Kolak noted that the company signed its first contract for hydropower plants in the demanding Japanese market in mid-May 2021. This is a contract for the design, production, and supervision of the installation of three generators for two small hydropower plants. Exceptional success was also achieved in the domestic market by contracting a project worth 57.2 million kuna for the construction of a 110/20 kV transformer station within the Rimac Campus, which Končar contracted in June with Rimac Automobili.

Furthermore, Končar also started work on a new 400/110 kV Ohrid transformer station this year, an extremely important project that will enable North Macedonia to connect internationally with Albania at the 400 kV voltage level and further strengthen the power system of the entire region. Throughout the year, Končar strengthened its presence in the European Union market, as well as in more distant markets such as the USA, where activities will be intensified in the coming years.

One of the most notable business breakthroughs of the Group in the celebratory 2021, on which, as they emphasize in the company, future business successes will undoubtedly be based, is the establishment of the company Končar – Digital. The company unites the latest knowledge and tools of the Končar Group and gathers the best domestic experts in the field of industrial software. Its portfolio will primarily include solutions from the field of digital platforms with open and modular architecture for the needs of power engineering, mobility, critical and urban infrastructure with advanced management and maintenance services.

Kolak also outlined plans for the continuation of positive trends in 2022. – The largest part of revenue in 2022 is planned to be achieved in the demanding European Union market, amounting to 1.5 billion kuna. In other markets, we plan to achieve revenues higher than those estimated for 2021, with the largest growth expected in neighboring countries and countries in Asia and Africa. Additionally, the plan for 2022 includes contracting new jobs amounting to 4.4 billion kuna. Thus, according to the plan, the state of contracted jobs (backlog) at the end of 2022 would amount to 5.6 billion kuna. This would create an exceptionally good basis for achieving the set strategic goals by 2024 – emphasized Kolak.

Speaking about investments planned in the Integral Strategy of the Končar Group 2020+, new investments of over 200 million kuna are planned for 2022. Planned capital expenditures are mainly directed towards investments in facilities and equipment, increasing production capacities in several companies of the Končar Group, further digitalization processes, and continuing the development of environmentally friendly products. The largest part of the planned investments will be financed from its own sources of funds.