Century of excellence KONČAR

CENTURY OF EXCELLENCE

This year the KONČAR Group commemorates its centenary. Over the years, the company has grown into one of Croatia’s biggest exporters and a standard bearer for innovation and technological development, becoming a symbol of longevity and tradition in its homeland.

Founded in 1921 in a small workshop in Zagreb, KONČAR is today a recognised regional leader in the energy sector and in rail vehicle manufacture. Over the last one hundred years, the company has delivered its products to almost 130 markets worldwide, including more than 400,000 transformers, voltage levels and power outputs, and constructed and refurbished 375 hydropower plants, 700 generators and some 200 low-floor trams and trains.

Electric Performance

The beginning of the KONČAR Group’s celebratory year was marked by excellent business results and strong growth in organic sales. Consolidated operating revenues for the first three months of 2021 amounted to an impressive €95 million, representing a year-on-year increase of 15%.

This outstanding result was heavily supported by the development and production of rail vehicles. KONČAR confirmed its strong position in the rail vehicle sector when it signed a new contract with HŽ Putnički prijevoz (passenger transport) for 12 electric trains for urban, suburban and regional routes.

Another milestone was achieved with the delivery of the first of 12 electric trams to Liepājas Tramvajs, a municipal tram company in the Latvian city of Liepāja, to be delivered by April 2022. The contract is particularly important for the Croatian manufacturer as it opens the door to the lucrative EU market.

“The 100% low-floor tram features KONČAR’s solutions for important subsystems, such as the main electric motor drive, auxiliary power supply, microprocessor control as well as communication technologies. It is equipped with an adjustable hydro-pneumatic suspension system, which allows the floor height to be adjusted depending on the tramway tracks. The vehicle has air conditioning, video surveillance and passenger information systems,” explained Josip Ninić, President of the Management Board of KONČAR – Electric Vehicles Inc.

Group synergies

“The low-floor tram and all its important subsystems are a result of our own development, in which numerous KONČAR Group companies have been involved. This agreement was preceded by the delivery of 142 low-floor trams for the City of Zagreb, worth over €250 million,” stated Ivan Bahun, Ph.D., Deputy President of KONČAR’s Management Board and President of KONČAR – Electric Vehicles Inc.’s Supervisory Board.

He added that the delivery of trams to Latvia represented not only an extremely important goal for KONČAR but also a great achievement in terms of Croatian exports.

“Our goal is not only to sell products but also to establish partnerships which produce good results. Through delivering the trams and providing Liepājas Tramvajs’ staff with training, we are sharing new knowledge and modern technologies, which will surely lead to a long-term partnership.”

The trams and trains are manufactured by KONČAR – Electric Vehicles, one of the group’s companies, which focuses on the development, manufacture, modernisation and maintenance of electric track vehicles and electric vehicle equipment, with a strong focus on customer specification.

KONČAR – Electric vehicles Inc. employs about 300 people and, when required, can draw on the wealth of experience and expertise of other companies n the Group for comprehensive projects, using the group’s synergy effects.

Positive business trend

Given market developments, KONČAR is expecting a good year. The company has contracts for new projects in 2021 worth €414 million, with as much as 58% pertaining to foreign markets. Two of the major projects include a new agreement with a Croatian customer for 11 new electric units for urban and suburban traffic and ten units for regional traffic, as well as the ongoing collaboration in Latvia.

Speaking about the Group’s future plans, Gordan Kolak, President of the Management Board of KONČAR, says: “We will focus on enhancing the power engineering portfolio, strengthening KONČAR’s role in the development and delivery of renewable energy solutions.”

“We are also considering increasing our capacities in ICT solutions and experiences, as well as upgrading the technology that our manufacturing systems are based on. This would be based on the overall digitisation of power engineering and allow us to follow suit with this energy transition that has already begun. It requires major investments aimed at bringing our production facilities to the level necessary to ensure stronger presence and continued survival in the global market.

Summarising the latest business developments, he says: “Despite the difficult period, we were able to act quickly and adjust our business processes to the ‘new normal’ in order to sustain a positive business trend. The pandemic has demonstrated our resilience and flexibility while continuing to provide quality and competence. This is the direction in which KONČAR wants to proceed, for the benefit of all our stakeholders.” n