Joint Investment of Končar and Siemens Energy in Transformer Boiler Production

Historically high demand for transformers is one of the most pronounced results of the green energy transition, which is in full swing in the European Union, and one of the key components for their production are transformer boilers. For this reason, representatives of Končar and Siemens Energy signed a Joint Venture Agreement.

The two partners have been collaborating since 1994 within the joint company Končar – Energy Transformers (KPT) and will deepen their existing partnership through the new company Končar – Transformer Boilers (KTK), which will focus on the production and sale of transformer boilers. The prerequisite for concluding the transaction includes obtaining approval for the transaction from the relevant competition protection authorities.

This is a strategic partnership that will enable the expansion of production capacities, the sale of part of the future production capacity to Siemens Energy, mutual exchange of knowledge and competencies, risk sharing, and significantly greater placement of transformer boilers in the global market. The goal of the transaction between the two long-term partners is cooperation in the form of a jointly owned company, in which Končar will be the majority owner with 60 percent stake, while Siemens Energy will own 40 percent. The outcome of the cooperation will be the construction of a new transformer boiler production facility at Končar’s location in Sesvetski Kraljevac.

– Today’s signing of the Agreement marks the beginning of a new joint venture that will bring many benefits not only for the Končar Group and Siemens Energy but also for our country as a whole. The establishment of a joint company for the production of transformer boilers, in which Končar will be the majority owner, represents a synergy of knowledge, experience, and innovation. In a rapidly changing world facing the challenges of energy transition, transformers play a key role in ensuring reliable and efficient electricity supply – said Marko Primorac, envoy of the Prime Minister, Deputy Prime Minister of the Republic of Croatia, and Minister of Finance, emphasizing the importance of sustainability in today’s time when it has become a key word in the global economy. According to Primorac, investing in innovative and environmentally friendly technologies contributes to the goals of reducing greenhouse gas emissions and transitioning to green energy.

The Agreement was signed by Gordan Kolak, President of the Management Board of Končar, and Tim Holt, member of the global Management Board of Siemens Energy, at a ceremony at Končar’s premises.

– By combining Končar and Siemens Energy as two established high-tech companies, we undoubtedly ensure stronger recognition and competitiveness worldwide, especially in Europe, greater resilience to crises, accelerated operations, and higher efficiency in related activities. Thus, we create an opportunity for significant business growth and long-term provision of safer and better working conditions for our people – emphasized Gordan Kolak.

Tim Holt, member of the global Management Board of Siemens Energy, stated during the signing of the agreement that this future facility will produce about 160 boilers for large energy transformers annually, which will be sufficient to supply energy to 2.4 million households per year, and Končar is, according to him, a natural partner as it possesses the necessary expertise for smooth and rapid production of high-quality equipment.

It is worth noting that upon the establishment of Končar in 1921, the first owner of the then company was Siemens, which continued its collaboration with Končar in 1994 by establishing the joint company Končar – Energy Transformers, with Siemens (now Siemens Energy) holding a 51 percent ownership stake and Končar the remainder.