We’ve got the power The Switch

Leading drive train developer and manufacturer The Switch has maintained its reputation as an innovator in this fast-moving industry thanks to a continued focus on fresh ideas. Industry Europe’s Emma-Jane Batey spoke to president and CEO Jukka-Pekka Mäkinen to learn more.

WE’VE GOT THE POWER

Industry Europe last spoke with The Switch in 2012 which, while that may only be two years ago, is a life-time in the fast-moving world of ecologically responsible power generation. Having continued to develop apace, The Switch has added to its roster of sectors and applications. An increasing number of customers are appreciating the value of incorporating its technologically advanced drive trains in their power generation solutions.

A leading supplier of megawatt-class permanent magnet generators and full-power converters, Finland-based The Switch has boosted its profile by concentrating on how to integrate its technology into new premium-quality turbines. President and CEO Jukka-Pekka Mäkinen spoke to Industry Europe to explain: “In the past two years we have seen considerable pressure on the wind power industry, with the prices being continuously pushed down. Wind power is still our core business, but we have seen clear consolidation across the industry.” Understanding the industry

This trend for consolidation throughout the wind power industry has meant that there has been what Mr Mäkinen described as ‘a weeding out process’. He continued, “Where there were perhaps 80 companies in the industry in China, today there are more like only 20. As well as consolidation, there were some companies that just didn’t make it. Even though wind power generation is a relatively new industry, the global economic crisis has certainly contributed to the fact that everyone – from the huge power station-owning conglomerates to the energy end users – is looking to save money. The good thing about this is that the companies that have ridden the waves and survived are strong. The Switch has a strong reputation and order backlog.”

The upturn in the wind power industry is evidenced by the fact that the share price of Vestas has increased by more than 500 per cent in the past 18 months. Mr Mäkinen added, “The industry is much stronger now. It’s not so new, and we’ve had the time to become more established as a sector.”

The success story that is The Switch is thanks to its ability to innovate and to diversify. The progress of the company is a part of the industry’s return to an upward trajectory. He said, “The Switch is performing well; we’re aiming for profitability in our selected applications and a good position in the industry. We’re seeing that vertical integration is no longer a prominent trend in the wind turbine industry, with many of the major manufacturers keen to make all of the components themselves. Instead, they are turning to reliable partners for collaboration. This trend has certainly contributed to our excellent achievements in recent years as these turbine manufacturers can utilise the technology that we offer and can integrate it into their solutions.”

He continued: “Many of our customers in the wind power industry have also recently

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focused on their own core competencies, so there is a growing trend for more specialism in a certain product. The Switch is the ideal partner for these companies as we can integrate our advanced technology into their components, helping to differentiate their products in a market that is always looking for excellence.”

Diversified applications

The Switch’s customers are not only found in the wind power industry, although this remains its largest application sector. As well as providing the permanent magnet generator for two of the world’s largest eight-megawatt turbines, the company has recently announced a permanent magnet shaft generator order for the marine industry. Mr Mäkinen said, “The Switch is diversifying into other industries. Our permanent magnet machines and full-power converters can be integrated into other energygenerating applications, like wave and tidal power plants. We know that the market needs field-proven and reliable technology and we provide that value.”

The company’s diversification strategy means it has been finding other markets for the same technology it has created for the wind power industry. For example, it is now active in using permanent magnet technology for the global marine industry in shaft generators and propulsion applications. Mr Mäkinen added, “We’re always looking for the killer application. Our advanced drive trains are already playing a part in the changes and developments of the various industries in which we are – or may soon become – active, such as in marine, mining and other industrial applications where we see high potential. We’re also excited about our new marine shaft generator, which allows a ship to save fuel and better meet the more stringent emission regulations by using a permanent magnet generator and full-power converter.”

With The Switch’s plans for the future defined by Mr Mäkinen as a desire to change the world with advanced drive trains, it is clear that the rapid changes across the power generation industry are helping to drive the accomplishments of this ambitious company. Mr Mäkinen concluded, “The Switch is well positioned to be the clear choice for OEMs making efficient energy solutions.” n