ABB sets up traction converters joint venture in Nanjing

Nanjing, April 16, 2008 – ABB, the leading power and automation technology group, signed an agreement in Nanjing today with SANPOWER Group to set up a joint venture – ABB Traction Converters Limited, to design and manufacture traction and auxiliary converters for rail transportation, thus bringing the total number of ABB’s local enterprises to 26.

Economic growth has been accelerating urbanization process in China, where 150 cities with over one million people have appeared, posting high demand for improved transportation system. Rail transportation has proved to be the most effective way in reliability, speed, capacity, and energy consumption, in long-distance and urban transport. According to government plans, 22 cities in China will have metro in operation by 2020, with the total track length reaching 4,637 kilometers.

ABB Traction Converters company will produce traction drive converters and auxiliary power converters, which are important components for both urban rail and mainline railway transportation vehicles. The new company will use ABB’s latest technology for traction and auxiliary converters which enjoy high reliability, flexibility and scalability.

The solutions base on ABB’s modular Power Electronic Building Block hardware and a high performance control platform which are well proven and widely used in applications in Europe as well as already successfully in China. Customers’ requirements can be effectively met by combinations of suitable modules and allow an easy integration into train systems, thereby effectively improving the efficiency and quality of domestic rail vehicle manufacturers in doing R&D and system integration.

At the signing ceremony today, Chairman and President of ABB China Brice Koch said, “The establishment of ABB Traction Converters Limited marks ABB’s further commitment to support China’s rail transportation construction. We are combining our advantages together with SANPOWER Group in technology, manufacturing, marketing, etc. bringing more value to rail transportation’s development in China, and Yangtze River Delta area in particular.”

Founded in 1993, SANPOWER Group has been one of the biggest privately owned corporations in Jiangsu Province. The group has several business divisions such as manufacturing, real estate and IT chain stores. Its manufacturing operation (Hongtu Zhi-zao) has established many hi-tech manufacturing bases in Nanjing, Wuxi, Hai Nan and Changzhou. SANPOWER Group is among China’s Top 500 Enterprises and China’s Top 500 Manufacturing Enterprises.

Mr. Yuan Yafei, Chairman of SANPOWER Group, said, “SANPOWER Group has achieved rapid growth since its founding. To work with ABB is to combine the flexible operation of a private enterprise with the leading technology and management of ABB, which will surely lead to mutual benefits.”

ABB has kept increasing investment in China to expand and refine its existing local enterprises and establish new ones in recent years. ABB has announced an additional investment of 100 million USD 2008 following its heavy investment in the past.

In the rail transportation, besides providing traction converters, ABB also provides traction transformers, low voltage switchgears, distribution transformers and many other kinds of equipment which have been used widely in projects in Beijing, Guangzhou, Shanghai, Shenzhen, etc.

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 110,000 people. ABB has a full range of business activities in China, including R&D, manufacturing, sales and service, with 12,800 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.