Beijing, November 22, 2011 - Guodian Nanjing Automation Ltd. (SAC) and ABB jointly announced today the establishment of a joint venture Nanjing SAC Automation Co, Ltd. The new JV, approved by MOC the day before, will focus on R&D, design, engineering, manufacturing and sales of the complete substation and distribution automation products and system portfolio (power grid automation) to serve the fast growing market, including utilities, industries, and smart grid applications.
Claudio Facchin, President of ABB North Asia and China, said, "The new company will be one of the largest investment deals of ABB in China. It will adopt the best practices of both companies in all different areas, such as technology, operations, and other management systems. To establish the win-win cooperation with SAC is a very efficient way to strengthen our position and create strong values to both in the highly competitive utility market."
Chen Lidong, General Manager of SAC, said, "The cooperation with ABB will help SAC to get a strong global brand, further strengthen its technology leadership, position and enhance its product portfolio, get access to export markets and globalize its management. "
The JV, owned 51% by SAC and 49% by ABB, expects to start operation in December. According to the agreement, while SAC will contribute its complete power grid automation business (PGA, including urban & rural power grid automation), into the new JV, ABB will contribute its Distribution Automation business in ABB Transmission and Distribution Automation Equipment (Xiamen), part of its medium voltage business in Power Product Division and Substation Automation systems, products and communication business in ABB Engineering (Shanghai) in Power System Division. The new JV will have more than 1,300 employees, including 200 R&D engineers.
SAC is a subsidiary of the China Huadian Corporation, a large state owned company in the power generation field. Based in Nanjing, SAC is a listed company in the Shanghai Stock Exchange since 1999. It's one of the leading players in China for substation and distribution automation products, systems and services with over 70 years history in China and good quality products designed with advanced technology specifically for the Chinese market.
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 130,000 people. ABB has a full range of business activities in China, including R&D, manufacturing, sales and services, with 17,000 employees, 31 local companies, and an extensive sales and service network across 80 cities.
