2010-02-16 - ABB Guangdong Sihui Instrument Transformer Co. Ltd is ABB’s 30th local company in China
Beijing, February 11, 2010 – ABB, the leading power and automation technology group, has announced the signing of a contract for a new joint venture in China -- ABB Guangdong Sihui Instrument Transformer Co. Ltd. with joint investment by ABB and Guangdong Sihui Instrument Transformer Works Company. The new company, focusing on the design and manufacture of instrument transformers, sensors and insulation components essential for the production of medium voltage (MV) switchgear, will be one of ABB’s global medium voltage instrument transformer production bases.
At the contract signing ceremony, ABB China Chairman Claudio Facchin said, “This new joint venture, bringing the total number of ABB’s local companies to 30, is another firm step in our ongoing plans to maintain ABB’s investment and growth in China. In the past six years, ABB has sustained an annual investment of over $100 million in this country.” He continued, “The strong interest we are experiencing in the Smart Grid is providing a major boost in the development of smarter, high-technology power systems including switchgear, which in return is driving the need for high quality transducer and sensor products. As China’s leading switchgear provider, this is an important strategic move that ensures we are well prepared with high quality transducers for both our own needs as well as that of the wider market.”
Instrument transformers are measuring transducers used to protect power switchgear by monitoring closely the currents and voltages it is handling. They play a vital role in making the switchgear safe and reliable. The market for instrument transformers in China is growing at about 10 percent a year.
In creating the new joint venture, ABB’s Chinese partner will move all its instrument transformer, sensor and insulation component related business activities into ABB Guangdong Sihui Instrument Transformer Co. Ltd. ABB will help develop the new company’s business by upgrading key areas, such as product technology, manufacturing processes, overall management, OHS and so on to current international standards.
“This latest joint venture in China continues our long term plans to reinforce ABB’s position as a strategic global supplier of Medium Voltage products and systems,” said Markus Heimbach, global head of the Medium Voltage Products business within ABB’s Power Products division. “It will provide significant additional manufacturing capability to support the instrument transformer needs of both our local business and customers worldwide.”
Sihui Vice Mayor Wu Guanru said, “It’s a milestone in the progress of Guangdong Sihui Instrument Transformer Works Company to link up with ABB. ABB is the first Fortune 500 to start business in Sihui, and is the world leader in power and automation technology. I believe the two strong partners will make a huge success in this business and be a great contribution to Sihui’s social and economic development. We are committed to providing very favourable policies as well as good services to help the project become successful and profitable as early as possible to achieve a win-win cooperation.”
The new company, which will start operation in the third quarter of 2010, will supply both ABB’s local switchgear companies and the markets home and abroad.
In the future, ABB will introduce a new series of medium voltage sensors to the joint venture, helping it to gain significant competitive advantages through the latest technology, compact design and outstanding energy efficiency.
Established in 1988, Guangdong Sihui Instrument Transformer Works Company specialized in designing, manufacturing and marketing of instrument transformers, transformers, switchgears, sensors and insulated components. It is one of the top five medium voltage instrument transformer providers in China.
Guangdong is one of ABB’s key locations in China, with two other local companies ABB Zhongshan Transformers Company and ABB Xinhui Low Voltage Switchgear Company and three branch offices in Guangzhou, Shenzhen and Dongguan, with more than 1800 employees.
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 120,000 people. ABB has a full range of business activities in China, including R&D, manufacturing, sales and services, with 15,000 employees, 30 joint ventures and wholly owned companies, and an extensive sales and service network across 60 cities.