KL Industri has won a major contract in a new market and is now setting its sights on a record-breaking turnover for 2024. “We want to reach one billion SEK this year,” says CEO Tino Gournambassis.
The company, located along Norralundsvägen, manufactures sheet metal and concrete power grid substations. These electrical enclosures are commonly seen across Sweden and are used by Eon, Ellevio, and Vattenfall for their infrastructure needs.
Until now, KL Industri has focused its sales on Sweden and Finland.
“We have spent over three years analyzing and understanding the Danish market. Our goal has been to expand, and now, on our first attempt, we have secured a major contract with Nexel, a Danish company comparable in size to Sweden’s largest energy providers,” explains a satisfied Tino Gournambassis.
The new three-year contract, recently signed by the CEO, includes an option for a four-year extension.
“It’s difficult to put an exact figure on the order value, but it’s estimated at around 70–100 million SEK initially. This is one of our top three contracts to date. We are set to deliver approximately 350 power grid substations per year, though that number could increase,”
says Tino Gournambassis, adding:
“The stations we will manufacture are specifically designed for a fossil-free society. This was a key factor in the entire process.”
KL Industri currently has 215 employees, along with around 40 temporary workers from staffing agencies.
“With this contract, we are securing jobs for our team. Some of our temporary employees will likely transition to permanent positions.”
With this new Danish contract, Tino Gournambassis is optimistic about the company’s trajectory.
“This is just the beginning. This summer, we will participate in another major tender in Denmark, which we are eager to win. If we continue securing contracts, we will need to increase our production pace and hire more staff in the long run.”
KL Industri has had a steady turnover of around 500 million SEK per year in recent years. However, in 2023, revenue jumped to 830 million SEK, and the company expects further growth.
“Our internal goal is to reach one billion SEK in turnover by 2024, one year ahead of schedule. It’s an ambitious but realistic target and would mark a major milestone for us,” says Tino Gournambassis.
Can KL Industri handle the increased production with its existing facilities?
“Yes, we are currently undergoing a major upgrade of our production facilities. We are expanding vertically within our existing buildings. Since we have high ceilings, we can utilize unused vertical space instead of expanding outward. At the same time, we are investing in new machinery to enhance efficiency” explains Tino Gournambassis.
Article from Norrköpings Tidningar.
Photo: Mikael Grip.