JV set up to expand offshore wind business

The joint venture has been named ‘Kesto’.

KMC Line is a coastal and global shipping company with activities in heavy cargo shipping, with a fleet of vessels including bulkers and RoRo vessels.

The joint venture is quite a step away from its traditional lines of business, which president and CEO James Jonghoon Kim recognised in the signing.

“The Korean offshore wind market is one of the fastest growing markets,” he said. “We have a strong industrial base in South Korea but lack experience and the standard of service quality in the offshore wind industry. When we combine ESVAGT’s expertise and experience in SOVs with KMC Line’s regional maritime knowledge, I am convinced that Kesto will raise the bar for both safety and service quality in the industry.”

South Korea, which has plans to install more than 18GW of offshore wind by 2030, is still very much at an early stage.

“The potential of the Korean offshore wind market is very attractive, but as an emerging market it also comes with unknowns,” said ESVAGT CEO Søren Karas. “International developers and turbine manufacturers have a heightened focus on using well-known partners and respected suppliers when much else is new. That is to our advantage.”

Offshore wind has been an expanding sector for ESVAGT, which after the South Korean venture now has a presence on three continents, including North America. It also supports the oil and gas industry.

“KMC Line brings important market insight and strong relationships with local partners and authorities as well as the largest maritime universities in Korea,” said  Jacob Lykke-Kjeldsen, Senior Sales Executive at ESVAGT. “This will be important in combining ESVAGT’s years of experience within offshore wind in a new market and in ensuring a competent delivery and quality product from the first day.”