ABB Process Automation Adjust the Strategy to win business opportunities

　　ABB, the leading company of power and automation technology leader worldwide opens its annual biggest customer event in Beijing on May 11. The event is Automation World China with its theme of energy efficiency and renewable energy.

　　Veli Matti Reinikkala, head of Process Automation division Member of the Group Executive Committee of ABB Ltd., summarized three drivers for the development of process automation business in 2010 during the industry forum and the media briefing afterwards, “One is raising demand and scarcity of low cost resources drives investment to higher cost and more difficult resources. In addition, high commodity prices leading to higher importance of productivity and energy efficiency is another factor. The last one is digital technology continues to influence how people implement or use automation. We could say that the above three drivers enable ABB to grasp more opportunities, which help to increase Process Automation business.”

　　Owing to the above three drivers, Process Automation business revenues reaches to $7.4 Billion in 2010, which occupied 21% of total ABB China revenue.

　　Moreover, Process Automaton business adjusted its strategy and began to enter the faster growing mid-segment market dominated by local competitors. Obviously, Winmation is a good example in terms of acquisition, by which both ABB product and business profile are complemented. For the year 2010, ABB spent approximately $1.3 billion on acquisitions (excluding the India transaction) aimed at positioning itself for significant future growth opportunities.

　　ABB Process Automation not only focus on grasping the growth opportunities provided by emerging market or mid-segment market ,but also devoting itself in providing customers full service. Joachim Braun, head of ABB NAS&China Process Automation Division mentioned,” The service market is maturing, and thus we established a new full service business unit, differentiated from service business unit. The strategy is aimed to satisfy customer’s various needs more efficiently with our comprehensive service products, to maintain and improve the production equipment performance and reliability for an entire facility. In addition, ABB provide automation and electrical integration solution to customers, such as award-winning System 800xA, No.1 Distributed Control Systems, substation automation products and process electrification products. We predict that future market will remain strong growth but with unclear development trend. So, we will continue to seize these growth opportunities in order to facilitate the business development.”

　　2010 ABB China PA key projects：

　　?ABB automates Kazakhstan-China pipeline with SCADA vantage TM

　　in June 2010.

　　? Electrification Unit successfully won a series of orders from Sino Iron project in Australia in April 2010.

　　?ABB Minerals China signed Hulusu Coal Mine Production Hoisting System Contract with China National Coal Development Co. Ltd., in August 2010.

　　? In October 2010, Crane Systems China won an order to supply 6*3000T/H Grab Ship Unloader (GSU) to Caofeidian Ore Terminal.

　　?APRIL Rizhao Project is the breakthrough of PA Full Service business in China, forming the foundation of Full Service rapid development in China.

　　? In the beginning of year 2010, ABB has signed contracts with CSSC Wuchang shipyard for the supply of electrical power and propulsion system.

　　? ABB China PA Turbocharging business unit successfully signed the second Operation Performance Package contract with China International Marine Containers (Group) Ltd

　　ABB () 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 117,000 people. ABB has a full range of business activities in China, including research and development, manufacturing, sales and services, with 15,300 employees, 30 joint ventures and wholly owned companies, and an extensive sales and service network across 60 cities.