ABB automation technology supports key iron and steel project in China

ABB continues its support to developing automation talents in China

Beijing, China, November 30, 2006 - ABB, the leading power and automation technology group, said today that it has signed contracts worth $17 million with Tonghua Iron & Steel Group Co. to supply automation and drive solutions for its new one-million-ton cold strip rolling project. The project will be put into operation in October 2008.

“We were very impressed with ABB’s technical competence,” said Zhang Chengwu, vice general manager of Tonghua Iron & Steel Co., Ltd. “We chose ABB because we trust its brand and fame.”

ABB will supply medium- and low-voltage drives, main motors, level 1 & 2 automation system, stressometer flatness system and instrumentation to two sets of 6 hi single-stand reversible cold rolling mills and one set of skin pass mill. The deliveries will be accomplished in October 2007.

“This order underscores our continued success in China’s metal industry and the confidence of our customers in our advanced technology,” said Peter Leupp, chairman and president of ABB China. “We are proud to contribute our cutting-edge automation technology to supporting China in its endeavor of modernizing its manufacturing industry.”

“Our broad metal processing expertise combined with our proven automation technology will help our customer significantly raise energy efficiency, thus cutting down the power consumption,” noted Christer Skogum, head of ABB Center of Excellence Process Line and Tube Rolling Mill and head of Process Automation for ABB in China and North Asia.

This project is ABB’s global pilot line, which will be equipped with the world’s leading products and technologies, including ABB’s unique direct torque control AC drives, IGCT and IGBT technologies. This is the first cold rolling mill order in mainland China won by the Beijing-based ABB CoE (the Center of Excellence Process Line and Tube Rolling Mill). This is also the first order in which ABB supplies the local made medium-voltage synchronous motors for cold rolling mills.

Tonghua Iron & Steel Group is the only state-owned large-scale iron & steel complex in Jilin Province. It is also one of the key enterprises supported by the government’s strategy of reviving the old industrial base in Northeast China. The new one-million-ton cold strip plant is the life-line project of Tonghua Iron & Steel Group Co., patronized with loans from State Development Bank. Its product will be widely used in buildings and electronic appliance industries, 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 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. To know more about ABB, visit www.abb.com.cn.

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