ABB inaugurates the world's largest insulation components factory in Chongqing

Chongqing, China, November 22, 2006 - ABB, the leading power and automation technology group, celebrated today the completion of its factory for insulation components in Southwest China's Chongqing. With its operation, the factory turns ABB Chongqing Transformer Co., Ltd. (CNCTC) into the world's biggest insulation component production center. CNCTC is also the largest transformer manufacturer in the world.

CNCTC extended the factory by 10,000 square meters in an effort to enlarge the production of insulation components. This represents another achievement made by ABB in further developing Chinese market, following the successful expansion of its transformer factory in Zhongshan of Guangdong province early this month. With its completion, the production capability of the factory will reach 90 GVA, doubling its original production capacity when it was first built in 1998. The new factory will supply reliable insulation components to transformer plants in China, Thailand and Vietnam to meet the demands for high quality transformer products.

"China has become one of the most important manufacturing, engineering and purchasing bases of the ABB Group. Our commitment to grow in China, for China and with China will remain for the long term." said Brice Koch, head of ABB transformer business. "With the adding of the new IKC center, which is also the largest of its kind in the ABB Group, Chongqing ABB Transformers will add to our total capacity and capability in serving the Chinese market with the best transformers."

Insulation components have great bearing on the electrical performance and mechanical stability of transformers. Their life span has direct impact on that of transformers. The new factory will provide full-ready insulation material in preassembled kits to improve production efficiency in the supplied transformer factories, while helping ensure the life span and stability of transformers. The recent rapid growth of domestic and global transformer markets has spurred a large increase in the demand for insulation materials. The expanded factory will to some extent help ease the demand.

"With the new factory we increase the total capacity and capability of insulation material supply, so that ABB can continue to support the increasing demand in China and South East Asia," noted Matti Stoor, general manager of CNCTC. "More and more transformer manufacturers and end-users will benefit from ABB's world class insulation technologies and products."

At present ABB has total 6 joint and wholly owned transformer factories in China, which are located in Shanghai, Zhongshan of Guangdong, Hefei of Anhui, Datong of Shanxi and Chongqing. ABB's transformers have seen their wide application in China and play an important role in the country's key projects.

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 around 100 countries and employs about 107,000 people worldwide. ABB has a full range of business activities in China, including manufacturing, R&D, sales and service, with 10,000 employees, 26 joint ventures and wholly owned companies, and an extensive sales and service network across 38 cities.