What Is CKD Generator?
In the process of purchasing or selling a diesel generator set, terms such as CKD may show up, but what do they mean?
So, what is CKD?
CKD stands for complete knock down, or completely knock down. Complete knock down means that a dg set is shipped as parts that have not been assembled. In the case of a dg set being shipped as complete knock down, the end-user will need to assemble the generator unit by themselves locally by adding some necessary components (control panel, wiring, breaker, sensors, batteries, terminals, etc.).
What are the benefits of CKD?
The reason that many items are shipped as complete knock down are as below:
a) to reduce import duties or local tariffs;
b) to lower costs associated with shipping;
c) to lower the assembling costs;
d) to increases the productivity rate for the manufacturer;
e) to improves stock availability for customers;
f) to improve competitiveness;
g) to expand supply scope.
Who will benefit from CKD generator?
For those customers who wish to assemble generators locally, this can offer significant savings on both assembly costs as well as potential savings on Import Duty and local Tariffs. In certain Countries like Nigeria and many in the Middle East where finished and complete canopied diesel generators carry onerous Import Duties and other local Tax Tariffs, it is becoming ever more prohibitive to import. It therefore makes sense for re-sellers and generator dealers in countries where import duties are high, to consider buying ckd unit and assemble it locally. It may also be good for those medium and large manufacturers who require fast deliveries and/or particular combinations, as an alternative to their traditional supply channel.
