ABB joins hands with Huineng on its 26th local company to meet strong local demand for reliable electric products
Tianjin, August 22, 2008 – ABB, the leading power and automation technology group, signed an agreement here today with Tianjin Binhai Huineng Investment Co., Ltd. (Binhai Huineng) to set up a joint venture – ABB Tianjin Switchgear Co. Ltd. to provide manufacturing, sales and engineering services for medium voltage switchgears to meet the strong market demand for reliable power technologies in Tianjin and its neighboring areas. This has lifted the total number of ABB’s local enterprises to 26.
Tianjin’s rapid economic growth has posted strong demand to refurbish power infrastructure and expand electricity capacity. In 2007, the total electricity consumption in Tianjin amounted to 36.51 billion kWh. According to its 11th Five-Year Plan (2006-2010), the average annual growth rate of power consumption in Tianjin is estimated to be 11.3%.
According to plan, ABB Tianjin Switchgear Co. Ltd. will produce primary and secondary medium voltage switchgear, providing reliable products and high-quality engineering service to local customers. The new joint venture, costing a total investment of 20 million USD, will gain full access to ABB’s leading edge medium voltage technology which enjoys high reliability, productivity and energy efficiency in the market. The new joint venture will be located in Tianjin Beichen Technology Zone which was singled out for its advanced manufacturing facilities, good R&D platform, strong shipping and modern logistics service.
Chairman and President of ABB China Brice Koch said, “I am glad to add another company to our existing 25 successful local enterprises. The establishment of ABB Tianjin Switchgear Co. Ltd will enable us to get closer to our customers in Tianjin and the neighboring areas. By combining ABB’s solid strength in technology and global market experience with Huineng Group’s good resources in technology, manufacturing and marketing, we will be able to stand in a good position to contribute greater values to the industrialization and modernization of Tianjin.”
Mr.Jiang Yunzhi, Chairman of Tianjin Binhai Huineng Investment said, “Binhai Huineng is pleased to join hands with ABB. The new joint venture will be the largest medium voltage switchgear provider in Tianjin. When meeting strong demand of the local market for high quality power equipments, the new company will also help speed up the development of local electric component production industry in Tianjin, playing an important role in contributing to Tianjin’s plan to achieve power equipment manufacture industry grouping. ”
ABB has kept increasing investment in China to expand and refine its existing local enterprises and establish new ones. Early this year, ABB announced an additional investment of 100 million USD in 2008 in addition to its long term investment plan for China.
With the new joint venture, ABB will have 5 local companies in China dedicated to designing, manufacturing and selling advanced medium voltage switchgear and other power systems. ABB’s products have been used widely in many key construction projects including the South to North Water Diversion project, Beijing Chang’an Avenue’s reconstruction project, the People’s Great Hall, over 30 Olympic projects including “the Bird’s Nest”, and metro construction projects in Beijing, Shanghai, Guangzhou, Shenzhen, etc.
“Among ABB’s local companies, 11 rank among China’s top 100 electric enterprises. I have high expectation on making the new JV one of the key players in the electric industry in China”, Brice Koch added.
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in about 100 countries and employs more than 115,000 people. ABB has a full range of business activities in China, including R&D, manufacturing, sales and service, with 13,000 employees, 26 joint ventures and wholly owned companies, and an extensive sales and service network across 60 cities. To find out more about ABB in China, visit www.abb.com.cn.
Founded in 2005, Tianjin Binhai Huineng Investment Co., Ltd. has business operations in the field of power equipment manufacturing, real estate development, information technology and logistics. In 2007, Huineng ranked among the Top 100 Companies in Tianjin with its total sales reaching 3.9 billion Yuan.