PRZOOM - /newswire/ -
Zurich, Switzerland, 2014/04/03 - Investment fully in line with ABB’s focus areas of profitable growth through market penetration, innovation and expansion - ABB.com. NYSE: ABB
ABB, the leading power and technology group, announced together with the Xiamen municipal government of Fujian, a southeastern coastal province in China, that it will invest $300 million over the next five years in the city to set up a new development and production hub for power products and low voltage products.
When complete, ABB’s existing plants in Xiamen will be relocated to the hub’s upgraded facilities in the new Torch Hi-Tech Industrial Park where production capacity can be expanded.
“This investment is a strong sign of confidence in China and Xiamen,” said ABB Group CEO Ulrich Spiesshofer. “We continue to serve our Chinese customers with new technologies and products that were developed and made in China to improve energy efficiency and productivity.’’
“ABB has adopted an ‘In China, For China and the World’ strategy for a long time. We are ready to support our customers in realizing their intelligent upgrading in power and infrastructure through smart technology and innovation,” said Chunyuan Gu, head of ABB North Asia and China. “Our strategic move is based on Xiamen’s excellent investment environment. This expansion will give us a base to further improve productivity and optimize our footprint while further growing our local R&D, low-voltage products and power businesses. In addition, we will help the industrial value chain development in Xiamen.”
ABB has a full range of business activities in China, including R&D, manufacturing, sales and services. The company employs 19,000 people within 37 local companies and an extensive sales and service network across 109 cities. The vast majority of ABB sales revenue in China comes from localized manufacturing.
Xiamen has grown since 1992 into one of ABB’s largest business hubs in China and around the world, covering the full value chain of R&D, manufacturing, engineering, sales, and service in the low-voltage products and power businesses. Xiamen also houses ABB China’s shared services, supply chain management and corporate functions, employing nearly 4,000 staff.
ABB (abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 150,000 people.