ABB invests $170 million in the U.S.

Rhea-AI Summary

ABB is investing approximately $170 million in the U.S., aiming to meet rising demand for electrification and automation products. This includes new facilities in Wisconsin to enhance production capacity and create 300 new jobs across various states. The investment is bolstered by support from the Inflation Reduction Act; 85% of ABB's U.S. sales are from locally produced products. ABB's U.S. operations contribute 24% to its annual revenue, with ongoing projects projected to improve supply chain security and reduce delivery times by 50%. The company has invested $14 billion in U.S. expansions since 2010.

Positive

• Investment of approximately $170 million in the U.S. aims to meet increased customer demand.
• Creation of 300 new skilled jobs across manufacturing and technology operations.
• 85% of sales in the U.S. are from locally produced products, enhancing supply chain security.
• New facility in Wisconsin to boost production capacity for industrial electric drives.
• Supported by favorable legislation including the Inflation Reduction Act, encouraging local manufacturing.

Negative

• None.

Cary, NC, April 04, 2023 (GLOBE NEWSWIRE) --

• Investment reflects increased customer demand for electrification and automation products
• Wisconsin greenfield facility for drives and services demonstrates continued commitment to U.S. customers and workforce
• Inflation Reduction Act supports company’s continued investment in creating more secure supply chain and strengthening local manufacturing

ABB is accelerating its growth strategy in the United States by investing approximately $170 million and creating highly skilled jobs in manufacturing, innovation and distribution operations. ABB is committed to growing in the U.S. by investing in its electrification and automation businesses that meet increased demand from industry-leading customers, while supporting the clean energy transition and the trend towards reshoring of production. This commitment is highlighted by today’s pouring of the concrete foundations for a greenfield drives and services facility in New Berlin, Wisconsin. The U.S. is ABB’s largest market, comprising 24 percent of the company’s annual revenue.[1]

“The United States is critical to ABB’s success as a market that will continue to grow and benefit from our product portfolio that enables the transition to a more energy-efficient future,” said Björn Rosengren, CEO of ABB. “Currently, 85 percent of ABB’s sales in the U.S. are from products produced locally, which provides customers with a more secure supply chain and keeps good-paying manufacturing jobs in America.”

ABB technology touches every sector of the economy, from transportation to utilities to buildings. Recently passed legislation like the Inflation Reduction Act, CHIPS Act, and Infrastructure Investment and Jobs Act, gives ABB confidence to invest in manufacturing capacity, distribution systems and technology innovation to bring products and services closer to customers.

Investment projects underway across the U.S. include:

• New Berlin, Wisconsin: Opening of Drives and Services manufacturing facility will increase U.S. production capacity of industrial electric drives and provide additional customer services. The business manufactures a wide range of AC variable frequency drives and controls which reduce energy consumption in buildings and industrial applications in the U.S. market. The nearly $100 million greenfield investment is expected to be completed in late 2024 and is replacing a neighboring existing facility, which employs approximately 720 workers. Some 100 new jobs will be added over the next three years.
• Memphis, Tennessee: Investing $3 million in the opening of an Installation Products Research & Development Lab and Innovation Center to accelerate development of new products. ABB remains the seventh-largest private employer in Memphis.
• Atlanta, Georgia: Opening of packaging and logistics facility for end-to-end robotic automation solutions in warehouse and distribution, retail, and logistics industries. This $2 million investment will open in 2023 and create approximately 15 jobs.
• Albuquerque, New Mexico: Previously announced $40 million investment in a new facility to manufacture Elastimold, the leading brand for underground cable accessories, to support strengthening a more sustainable U.S. electrical grid. It underpins ABB’s commitment to improve reliability and resilience of the U.S. infrastructure and assure greater safety for American consumers, businesses, and communities. The investment will create 55 new jobs and will be completed by 2024.
• Auburn Hills, Michigan: Previously announced expansion of North American robotics headquarters and manufacturing facility as more customers turn to automation to build resilience while improving efficiency and flexibility as part of the near and reshoring of production. The $20 million investment will create 72 jobs and be completed by the end of 2023.
• Lehigh Valley, Pennsylvania: Previously announced opening of Installation Products Division Northeast Distribution Center in 2023. This more than $4 million investment will create more than 100 jobs and further regionalize ABB’s global supply chain to help reduce delivery times of high-demand electrification products to contractors by up to 50 percent.
• Columbia, South Carolina: Previously announced opening of electric vehicle charger manufacturing facility to build up to 10,000 chargers per year, ranging from 20kW to 180kW in power, to support operators building the national charging infrastructure. ABB E-mobility’s investment will create over 100 jobs.

“The Inflation Reduction Act is triggering investment in clean energy and supporting businesses that can produce technology locally,” said Michael Gray, U.S. Country Holding Officer of ABB. “More than ever before, ABB is designing and producing products domestically to serve our U.S. customers, as they move toward more sustainable electric power generation, clean energy manufacturing, electric transportation, and industrial efficiency including carbon capture and storage, as well as methane reduction.”

The U.S. federal government projects real gross domestic product to increase 2.5 percent in 2023, average 2 percent annual growth between 2024-2028, and grow 2.3 percent per year during 2029-2032.[2] This projected GDP growth, combined with an estimated global EV infrastructure investment of more than $1 trillion by 2040[3], gives ABB the confidence to continue investing. ABB projects 25 percent of global EV infrastructure investment will take place in the U.S.

Since 2010, ABB has invested $14 billion in U.S. plant expansions, operational improvements, state-of-the-art equipment, products, and people, making it the company’s largest market. With approximately 20,000 employees in more than 40 manufacturing and distribution facilities, ABB is investing, growing and serving customers across America through industries that create jobs, encourage innovation and achieve a more productive, sustainable future.

ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered and operated. Building on more than 130 years of excellence, ABB’s ~105,000 employees are committed to driving innovations that accelerate industrial transformation. www.abb.com

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[1] Based on 2022 ABB Group revenues

[2] Biden Administration 2023 budget

[3] BloombergNEF

Attachments

• Image: ABB New Berlin, WI rendering
• Image: Increased customer demand for electrification and automation products in the U.S.

FAQ

What is ABB's recent investment in the U.S.?

ABB is investing approximately $170 million to enhance electrification and automation operations in the U.S.

How many jobs will ABB create with its new investments?

ABB's investments aim to create approximately 300 new skilled jobs across various facilities.

What percentage of ABB's U.S. sales are produced locally?

85% of ABB's sales in the U.S. come from products manufactured locally.

When will the new drives and services facility in Wisconsin be completed?

The new drives and services facility in Wisconsin is expected to be completed by late 2024.

How much has ABB invested in U.S. expansions since 2010?

Since 2010, ABB has invested approximately $14 billion in U.S. plant expansions and improvements.