$30 million total investment will create strong player in the Chinese market
Beijing, August 26, 2005 - ABB, the leading power and automation technology group, announced today that it has signed a contract with Jiangjin Turbocharger Plant (JTP) to set up a new joint venture for the production, sales and servicing of ABB turbochargers in the Chinese market.
"We feel strongly that we can contribute to China achieving its goal to strengthen its position as a leading shipbuilding nation in the coming years," said Peter Leupp, chairman and president of ABB in China. "This investment allows us to play an important role in the dynamic Chinese market."
Leupp said ABB and JTP are investing around $30 million in the new JV, which will employ about 500 people. ABB is already the world's leading supplier of turbochargers for large diesel engines used in ships, power plants and locomotives. The partner in the JV, JTP, is a subsidiary of China Shipbuilding Industry Corporate (CSIC), and has been ABB's licensee for turbochargers in China since 1978.
By joining forces under the JV contract, ABB and JTP aim to further strengthen their position as a supplier of turbochargers to the Chinese market. Prior to the signing, ABB had already developed a strong position as a supplier of turbochargers for 2-stroke marine propulsion engines as well as an after sales service provider for its complete range of turbochargers, while JTP was the dominant domestic supplier of turbochargers in this market.
ABB will take majority ownership in the new JV, with JTP holding the minority position. The joint venture will be under ABB management and fully integrated in ABB's worldwide turbocharger network.
According to the General Manager of the new company, Ulrich O. Birch, the JV combines JTP's factory in Jiangjin in the municipality of Chongqing with both partners' sales and service stations along the coast, including those in Hong Kong. The new company will be headquartered in Jiangjin and is scheduled to start operating on January 1, 2006.
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impacts. The ABB Group of companies operates in around 100 countries and employs about 103,000 people worldwide. ABB has a full range of business activities in China, including manufacturing, R&D, sales and service, with 8,000 employees, 24 joint ventures and wholly owned companies, and an extensive sales and service network across 30 cities. To know more about ABB, visit www.abb.com.cn.