KONČAR Group adopts the 2023 Business Plan
KONČAR Group has announced that the Supervisory Board of KONČAR - Electrical Industry Inc. adopted the consolidated Business Plan of KONČAR Group for 2023.
Source: KONČAR Group
Croatia, Zagreb: KONČAR Group has announced that the Supervisory Board of KONČAR – Electrical Industry Inc. adopted the consolidated Business Plan of KONČAR Group for 2023.
The plan for the next year was prepared in uncertain and complex global circumstances impacted by the pace of the industrial post-Covid recovery, the duration of the war in Ukraine and the ensuing energy crisis and inflation trends. Despite these circumstances, further growth and development of KONČAR Group are forecast in the upcoming year.
On the basis of good order intake at the end of 2022, KONČAR Group plans to realise over $807 M (€760 M) in income in 2023. The value of backlog at the end of 2022 is expected to reach $1.06 B (€1 B). Order intake for 2023 is forecast in the amount over $648 M (€610 M), indicating that it accounts for 80 % of the planned income from the sales of products and services. Exports, primarily to European Union countries, continue to dominate in the total income. The majority of the planned $461 M (€434 M) income realised in the foreign markets is planned from Sweden, Germany, Spain and Austria. Compared to previous years, the export plan to Norway has significantly expanded, primarily as a result of the integration of Dalekovod into KONČAR Group.
In addition to growing the income side, one of the four strategic goals set out in KONČAR Group 2020+ Strategy is investment in the development of products, technologies and manufacturing capacities as the driver for the realisation of sales plans.
The investment cycles continues in 2023, with a focus on investments in new equipment and machinery. Energy transition and green CAPEX result in investments in improved energy efficiency and working conditions, primarily investments in PV power plants and use of renewable energy sources. Investment in research and development is recognized as long-term investment with the aim of creating sustainable and profitable business and building up new competencies, which will contribute to the stability and further growth of KONČAR Group.
The most significant planned projects include continued development of environmentally friendly products in power engineering, the development of equipment and components for battery and hybrid trains, and projects in the field of digital technologies. The 2023 investment plan amounts to more than $63.7 M (€60 M).
Investments in human resources, lifelong learning, professional development, and upskilling remain priority goals. In 2023, $1.27 M (€1.2 M) is allocated towards learning and training costs. The Group plans to hire 205 new people, primarily highly educated employees, which would bring the total headcount to 4,885 at the end of 2023.
Source: KONČAR Group
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