- Joining hands with local partners to establish a full value chain and drive win-win growth in China market
- Expanding investment and optimizing business footprint with pioneering achievements from 1992 into the digital future
- Support China’s low-carbon transformation and high-quality development as a Partner of Choice
ABB celebrated the 30thanniversary of its first joint venture company in China – ABB Xiamen Switchgear Co., Ltd. on November 29. The growth journey of the company over the past three decades is not only a typical example of ABB’s remarkable progress in localization with response to China market needs, but also a lasting witness of ABB's long-term commitment to supporting China’s industrial upgrading, national key projects as well as social progress.
“Over the course of three decades, ABB has been part of China’s industrial growth story by increasing investment and expanding strategic partnership.” said Dr. Chunyuan Gu, Chairman of ABB China, “We will continue our ongoing commitment of ‘in Chia, for China and the World’ through closer collaboration, to energize technological innovation and industrial upgrade, and accelerate digital transformation and sustainable development.”
A journey of localization and Innovation
ABB’s development in China has set a clear path of localization. As one of the earliest international enterprises to launch business in China after its reform and open-up, ABB in China has become a local player with global roots through leap growth from delivering products, local production to local design and development. ABB today has a full range of business activities in China, including R&D, manufacturing, sales and services, 27 local companies with 15,000 employees located in around 130 cities. China is ABB’s second-largest market worldwide with more than 90% of sales from locally-made products, solutions and services.
ABB has been at the forefront of every industrial revolution with its leading technologies throughout the history, promoting the evolution and development of industries. In China, ABB regards innovation as a key to keep its long-term competitive edge and has continuously improved its local R&D capabilities. In recent years, the China R&D teams have led or participated in the research and development of smart sensors, dual-arm robot YuMi®, i-Jia smart home system, 480kV High power liquid cooled super charger and HDS AC synchronous permanent magnet servo motor. Since ABB Ability™ was launched in China market, ABB has delivered customized digital solutions for local customers of many industries to help enhance quality, increase efficiency and drive digital transformation.
Energizing industry transformation for high-quality development
Scientific and technological innovation is the key to creating new drivers for high-quality development. China has seen an accelerating digital economy and higher level of new technology integration, releasing many new opportunities in such areas as digitalization, industrial Internet, smart manufacturing and e-mobility. ABB has been continuously expanding its investments in these key areas with a cumulative investment of US$2.9 billion in China.
ABB inaugurated its advanced innovation and manufacturing hub in ABB Xiamen Hub with an investment of US$300 million which is also the location of ABB Xiamen Switchgear Co., Ltd. The company specializes in the production, sales and service of 3.6kV – 40.5kV switchgears and circuit breakers. Now it has developed into a leading manufacturer of medium voltage switchgears and circuit breakers in the world, with an accumulated number of 400,000 units of switchgear panel and 1,000,000 units of circuit breaker delivered to domestic and overseas customers.
With the fast growth of China’s new energy vehicle industry, China accounts for half of the global sales of electric cars. To better meet China's rapidly growing demand for EV charging infrastructure, ABB increased its majority stake in the Chinese EV charging provider Chargedot earlier this year, and inagurated the head office of ABB E-mobility Technology Shenzhen company in August 2022. ABB also collaborated with HASCO, a leading Chinese automotive parts supplier to establish a new joint venture, aiming to drive smart manufacturing in China’s automotive industry.
As the largest market for robots in the world, China represented more than half of all robot installations worldwide in 2021. With a total investment of US$150 million, ABB Robotics Mega Factory will be put into operation in Shanghai on December 2, 2022. It will be ABB’s most advanced, automated and flexible robotics factory and will host a research and development center to help accelerate innovations in artificial intelligence. The new factory will better serve the Chinese market and support the ongoing industry transformation.
Promoting green transition towards carbon neutrality
Sustainability is key to ABB’s value proposition and business operation. Focusing on the areas of enabling a low-carbon society, preserving resources and promoting social progress, ABB targets to support customers to reduce their annual CO2 emissions by more than 100 megatons and achieve carbon neutrality in its own operations by 2030.
Locally in China, ABB has been leading by example in building green factories and reducing its carbon footprint by adopting renewable energy, implementing energy efficiency projects, electrifying company vehicle fleet, expanding solar projects at sites, upgrading equipment and production processes, and deploying waste reduction and recycling programs. Four ABB companies have been certified as national "green factories" by the Ministry of Industry and Information Technology.
ABB is working with its suppliers, customers and partners to enhance energy efficiency and reduce emissions. For example, by the end of 2021, ABB has delivered about 11 million drives and high efficiency motors to Chinese customers, with accumulated energy savings of more than 500 billion kWh. ABB has also deployed its mobile gas leak detection system in more than 30 cities across China and further launched its latest greenhouse gas emission detection solution for greenhouse gas monitoring.
Continuing commitment to corporate social responsibility
ABB's unremitting efforts have been widely recognized with many awards from local governments, associations and industry media in terms of social contribution, technology leadership, quality management, employee care and corporate social responsibility.
In China, ABB is reinforcing its long-standing commitment to community engagement by providing impactful support for community-building initiatives across three pillars: education, diversity and inclusion, and care in the community. In the field of education, ABB has donated about RMB 17 million accumulatively via ABB-New Great Wall Fund, benefiting nearly 5,000 students from 46 universities and colleges. ABB has been strengthening its cooperation with universities and supporting talent cultivation by hosting the annual ABB Cup Innovation Contest for 17 years, which has attracted more than 20,000 contestants.
ABB employees across China have actively participated in such charity activities as donation for disaster relief efforts, caring for senior citizens, volunteering in communities, and hosting electrical safety and robotics trainings. Meanwhile, as advisors in Beijing, Shanghai, Chongqing, Guangdong and Shandong, ABB is also proposing forward-looking advice to support China’s high-quality and sustainable growth.
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.