Representatives from KONČAR Inc. and Siemens Energy have signed a Joint Venture Agreement on July 12, 2024 in Zagreb. These two partners, essential for Europe's energy transition, have maintained a strong collaboration since 1994 through their joint company KONČAR – Power Transformers. KONČAR – Transformer Tanks, the newest collaborative effort, will centre on manufacturing transformer tanks. This 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. The goal of this transaction, subject to the receipt of necessary regulatory approvals, is the company KONČAR – Transformer Tanks to be jointly owned, with KONČAR holding a 60% majority stake and Siemens Energy holding the remaining 40%. The agreement includes terms and legal requirements, such as obtaining consent from the necessary competition authorities to finalize the transaction.

The unprecedented surge in demand for transformers is one of the most significant outcomes of the energy transition, which is gaining full traction across the European Union. Transformer tanks are vital components in this process, and the collaboration will result in a state-of-the-art manufacturing facility for these tanks at KONČAR's site in Sesvetski Kraljevec.  This partnership is designed to facilitate a comprehensive exchange of knowledge and expertise, laying the groundwork for significant technological advancements and the excellence standards. In addition, this venture will be pivotal in generating employment opportunities, facilitating learning and professional growth, and collaboratively overcoming technological and market challenges.

"Today's signing of the Agreement represents 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 tanks in which KONČAR will be the majority owner represents a synergy of knowledge, experience and innovation. In a world that is rapidly changing and facing the challenges of the energy transition, transformers play a key role in ensuring a reliable and efficient supply of electricity. Also, what is particularly important to us is that KONČAR, with its expertise and experience, leads the green energy transition and contributes to the decarbonization of the power sector in Croatia and the world. At a time when sustainability has become a key word in the global economy, investing in innovative and environmentally friendly technologies contributes to our goals of reducing greenhouse gas emissions and transitioning to green energy. Let this joint venture be an example of how by joining forces we can create something extraordinary and contribute to a better future for all of us," said Marko Primorac, the Special Delegate of the Prime Minister, Deputy Prime Minister and Minister of Finance of the Republic of Croatia.

The global presence and expertise of both partners, combined with their advanced technological foundations, set the stage for a highly valuable exchange of knowledge and competencies. This collaboration will build synergies that benefit and satisfy numerous global customers, playing a crucial role in achieving the European Net Zero scenario. 

„The launch of this new joint venture with Siemens Energy marks yet another historic milestone for KONČAR Group, the significance and value of which will become increasingly apparent in the years ahead. We are immensely proud to continue our long-standing and fruitful partnership with a company that is not only a leader in Europe but also a global powerhouse in the energy industry. By bringing together KONČAR and Siemens Energy - two renowned high-tech leaders on the global and European stages - we are bolstering our recognition and competitiveness domestically and particularly in Europe. 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," emphasized M.Sc. Gordan Kolak, President of the Management Board of KONČAR.

Tim Holt, Member of the Executive Board of Siemens Energy AG, said: “Transformers are the backbone of our electrical grid. The steel tanks used to house these transformers are more than just protective shells. They increase the reliability, safety and longevity of this critical equipment. This future facility will produce around 160 large power transformer tanks per year – enough to support 2.4 million households with energy annually.  Koncar 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”.

The official signing ceremony between KONČAR and Siemens Energy took place at KONČAR's premises. The agreement was signed by Gordan Kolak, President of the Management Board of KONČAR, and Tim Holt, Member of the Executive Board of Siemens Energy AG. This event marks a significant milestone in the collaboration between these two industrial leaders from Croatia and Germany, a partnership that extends over a century. KONČAR, founded in 1921, originally had Siemens as its founding owner. This historic partnership was renewed in 1994 with the establishment of the joint company KONČAR – Power Transformers, where then Siemens (and now Siemens Energy) holds a 51% stake and KONČAR 49%. This factory, located at KONČAR's Jankomir site, has since become renowned as one of the world's leading manufacturers of large power transformers.