Linz Electric acquires stake in KWG

Linz Electric SpA has acquired a 60% stake in KW Generator GmbH (KWG), marking a significant milestone in their nearly two-decade-long partnership

The move brings together two respected European manufacturers and blends Italian innovation with German engineering to address evolving global energy challenges.

The two companies offer highly complementary alternator product lines, and this strategic alliance results in one of the world’s most complete portfolios for power generation.

Their combined capabilities span a wide range of applications, from traditional generator sets to solutions supporting the energy transition, including mobile refrigeration, earthmoving machinery, and other equipment requiring continuous, reliable and flexible power.

New opportunities

With energy reliability and system resilience gaining renewed global importance, the strengthened partnership allows Linz Electric and KWG to pool expertise, resources and vision to deliver tangible solutions worldwide.

KWG brings advanced technologies and long-standing relationships with OEMs in sectors such as material handling, heavy-duty equipment, and extreme operating environments.

Linz Electric, part of the Pedrollo Group, contributes a well-established international distribution network and a direct presence in the US, opening up fresh opportunities and customer segments for KWG.

The acquisition reinforces Linz Electric’s position as a key player in a rapidly changing energy landscape, where innovation and strategic collaboration are central to long-term growth and competitiveness.

This partnership also strengthens the Pedrollo Group’s energy business. With annual revenues of US$540mn (€500mn), the group is increasingly recognised not only in water management and applied technologies but also as an influential force in the energy transition.

Giulio Pedrollo, CEO of the Pedrollo Group and founder of Linz Electric, said, "After years of collaboration, I am excited about the opportunities this transaction offers: the partnership between Linz Electric and KWG is a clear example of how international cooperation between companies that share values, vision and expertise can generate new opportunities for growth and development. Together, we are ready to face the great challenges of global energy transformation. We will continue to invest with determination in innovation, quality and customer service, while keeping our production roots firmly anchored in our home territories. For us, this project represents a concrete testimony to the value of European manufacturing excellence, capable of competing and innovating on an international scale."

Michael Werner, CEO and shareholder of KWG, added, "With Linz as our majority partner, we are confident in our ability to address the competitive landscape and capitalize on new growth opportunities. This partnership demonstrates our commitment to providing superior products and services to our customers."

Michael Kurz, technical director of KWG, said, "This collaboration with Linz is a strategic move that will allow us to leverage their extensive distribution network and technical know-how. Together, we can achieve greater innovation and offer even better service to our customers globally."