KMWE had a record year, sees opportunities, cautious about 2025
KMWE, already a manufacturer for F-16 and F-35 engines, wants to play a role in the expansion of the Defense industry in Europe.
Published on April 12, 2025
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The Brainport Industries Campus-based high-tech supplier KMWE saw exceptional sales growth of 11% in 2024, reaching almost €190 million, with a 40% increase in profits to €8.4 million. Despite these positive figures, director Edward Voncken warns in the ED that 2025 looks challenging due to headwinds in the chip industry and global uncertainty. However, the demand for airplane parts remains robust, with an expected 38% growth in sales, driven by innovative techniques such as 3D metal printing, which can reduce production times to six weeks.
The company has ambitious expansion plans, including US and Asian branches. With the support of new investor Quadrum Capital, KMWE aims to double its workforce to 2000. KMWE remains alert as it adapts to global market changes and technological progress.
Challenges in the chip industry
KMWE, a supplier in the high-tech sector, faces challenges in 2025 due to problems in the chip industry. Despite a solid year in 2024, there are signs of faltering due to the stagnation of the chip sector and global economic turmoil. Director Edward Voncken warns of ongoing uncertainties affecting the market. The decreased demand for chips is putting a brake on further growth and leading to a decrease in new orders, as companies are reducing their inventories in response to the uncertain market.
3D metal printing as an innovative solution
KMWE continues to innovate with technologies such as 3D metal printing, which plays a crucial role in their strategy to stay ahead of the competition. This technique allows the company to drastically reduce the production time of aircraft parts from one year to just six weeks. This not only significantly increases production capacity but also lowers production costs, giving it a major advantage in a constantly changing market.
Edward Voncken, KMWE
Growth in the aviation industry
Despite the challenges, the demand for aircraft parts remains strong. KMWE saw its sales in this sector grow by 38% in 2024, a trend that is expected to continue well into the future. The company's strong order book is filled until 2030, guaranteeing a stable income stream. This continuity in the order book strengthens KMWE's position as a leading supplier in the aviation industry despite global fluctuations in other markets.
Expansion strategies and investments
KMWE is focusing on global expansion to realize its growth plans. With the support of investor Quadrum Capital, KMWE is considering opening new branches in the United States and Asia. This strategic expansion should lead to a doubling of the workforce to 2000 employees. This ambitious plan will not only increase its global footprint but also increase its capacity to meet the growing demand for its technologically advanced products.
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"Brainport Industries Campus is one of the key cornerstones of Eindhoven's economic policy"
The significance of BIC
Brainport Industries Campus (BIC) plays a vital role in KMWE's operations and is essential for innovation and cooperation in the Eindhoven region. This campus, which houses over forty high-tech companies and educational institutions, offers a platform for cross-fertilization between academic and industrial domains. The success and growth of the campus emphasize the strategic position that Eindhoven occupies as a center for technological innovation, which helps KMWE gain access to a rich network of technology companies and talented workers. KMWE was one of the initiators of BIC and the driving force behind its further growth. The green light has now been given to construct cluster 2 of the campus, which will double in size.
Defense and drones
While KMWE continues to invest in technology and global expansion initiatives, it is aware of potential risks such as geopolitical unrest and changes in the economy. By focusing on strategic innovations such as 3D printing and expanding its global presence, KMWE is positioning itself at the forefront of a dynamic environment.
KMWE also wants to play a role in the expansion of the defense industry in Europe, director Voncken told the ED. “As a supplier of parts for the F-16 and F-35, we have expertise in that area. And it is already possible to print complete engines for drones.”