ABB demonstrates long-term commitment to China

Chongqing, March 31, 2010 – ABB, the leading power and automation technology group, signed an agreement today for the transfer of 800kilovolt (kV), high voltage direct current (HVDC) transformer technology to its local joint venture, the ABB Chongqing Transformer Co. at the inauguration of the company’s new ultrahigh voltage (UHV) Test Center in Chongqing.

This facility has been set up with an investment of over $20 million, and has state-of-the-art transformer testing capabilities for voltage levels up to 800kV DC (direct current) and 1000kV AC (alternating current).Under the terms of the technology transfer agreement, the ABB Chongqing Transformer Co. will be able to locally design, engineer, manufacture and test HVDC transformers up to 800kV.

“Maintaining economic growth while reducing environmental impact is a top priority for responsible politicians and business leaders,” said Claudio Facchin, Senior Vice President of ABB Group and President of ABB North Asia Region, “HVDC technology increases the efficiency of power transmission and lowers environmental impact. This is an example of government and businesses working together in China, putting policies into practice.”

When visiting ABB’s Swiss headquarters in December 2009, Vice Premier Li Keqiang recognized the contribution global companies like ABB make to the Chinese economy, and the importance of their continued involvement, particularly in high-tech industries.

“Today’s technology transfer agreement and the inauguration of the UHV Test Center demonstrate ABB’s long-term commitment to China and its economic development,” said Facchin.

ABB has invested an average of $100 million a year in China over the past six years, and around $300 million over 2008 and 2009, despite the financial crisis. ABB has 30 local companies in China, 11 of which were ranked among China’s top 100 electrical companies in 2009.

ABB has been actively involved in the development of high and ultrahigh voltage technology in China. This includes the recent 1000kV gas-insulated switchgear (GIS) for the southeast Shanxi to Jingmen power link, and the 2000km-long Xiangjiaba (Sichuan)-Shanghai ±800kV HVDC transmission system – the world’s longest and highest capacity power line.

China’s power grid is mainly comprised of 500kV AC and ±500kV DC links, while UHV voltage levels are in the 1000kV AC and ±800kV DC range. UHVDC transmissions have been compared to power superhighways that can greatly expand China’s bulk power transfer capability over much longer distances, while cutting power losses and land use sharply.

By 2020, China plans to have enough UHV-based power links in place to ensure a 200 million kW power transfer capability across the country's five regional grids. This would also help establish cross-border power transfers between China and neighboring countries.

”China is a key location for ABB, both as a market and a resource base, “ said Facchin, “At the end of 2009, we employed 15,300 people in China, and our revenues for the year were US$4.3 billion.”

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 117,000 people. ABB has a full range of business activities in China, including research and development, manufacturing, sales and services, with 15,300 employees, 30 joint ventures and wholly owned companies, and an extensive sales and service network across 60 cities.