Beijing, February 3, 2010 - ABB, the leading power and automation technology group, announced today the contract signing of a new joint venture -- ABB Guangdong Sihui Instrument Transformer Co. Ltd. jointly invested by ABB and Guangdong Sihui Instrument Transformer Works Company. The new company, focusing on designing and manufacturing instrument transformers, sensors and insulation components needed for producing switchgears, will be one of ABB's global medium voltage instrument transformer production bases in the world.
At today's contract signing ceremony, ABB China Chairman Claudio Facchin said, "This new joint venture, bringing ABB's local companies to 30, is another solid step taken by ABB to keep investing and growing in China. In the recent 6 years, ABB has kept an annual investment of over $100 million in this country."
Instrument transformer is a measuring transducer used in switchgear power system for the purpose of protecting the system by monitoring closely the currents and voltages of power. It's important in making the switchgear system safe and reliable. The market demand in China for instrument transformers has been growing at about 10%.
According to the contract, all the instrument transformer, sensor and insulation component related business activities will be moved into ABB Guangdong Sihui Instrument Transformer Co. Ltd. from its Chinese partner side, and ABB will help upgrade the new company's business in the areas of product technology, manufacturing process, overall management, OHS, etc, up to international standard.
"The encouraging prospect of Smart Grid will strongly boost the development of power systems including switchgears, which in return will drive the need for quality transducer and sensor products. Being the leading switchgear provider in China, we need to get better prepared with high quality transducers for both our own needs as well as that of the market," Facchin said.
Sihui Vice Mayor Wu Guanru said, "It's a mile stone for Guangdong Sihui Instrument Transformer Works Company successfully to join hands 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 business and 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 as to achieve a win-win cooperation."
The new company, going into operation in the third quarter, will supply both ABB's local switchgear companies and the markets home and abroad.
ABB will also introduce new series of medium voltage sensors to the new company in the future. The new series will feature ABB's latest technology, compact design and outstanding energy efficiency to enable the joint venture gain competitive advantages.
Established in 1988, Guangdong Sihui Instrument Transformer Works Company had dedicated in designing, manufacturing and marketing of instrument transformers, transformers, switchgears, sensors and insulated components. It is one of the top 5 medium voltage instrument transformer providers in China.
Guangdong is one of the key locations of ABB 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.
