Description
This quarter, ABB announced that it will invest 100 million euros to build a world-leading innovation and training park in Eggelsberg, Austria, where B&R is headquartered. This move
will promote ABB”s innovation in the fields of machinery and factory automation, including
artificial intelligence and machine learning . ABB also announced that it will invest approximately US$30 million in Sweden to build a new technologically advanced power transformer
component production plant.
ABB completes acquisition of GE Industrial Systems business
Through continuous business portfolio management, ABB is gradually promoting the shift of business focus. On June 30, 2018, ABB announced the completion
of the acquisition of GE Industrial Systems (GEIS). Through this acquisition, ABB further consolidates its second-ranked leadership position in the global electrification field,
expands the attractive North American market (ABB”s largest market), and accelerates the growth of the
leading cycle business. GE”s industrial systems business will be merged into ABB”s electrical products division
and become a new business unit – Industrial Systems Business Unit (EPI S ). EPIS is headquartered in Atlanta, Georgia, and has approximately 14,000 employees worldwide.
The acquisition is expected to create approximately $200 million in annual cost synergies starting in the fifth year. ABB will create value through the highly
complementary product and technology portfolio, especially the combination of ABB Ability™ solutions and GEIS”s large installed base. In addition, ABB will realize cost synergies
from business layout optimization, supply chain cost savings
and reduced sales and management expenses. The integration of GEIS is expected to reduce operating EBITDA margins
by approximately 60 basis points and 260 basis points respectively for ABB Group and ABB Electrical Products in the second half of this year. After this,
ABB plans to restore the operating EBIT margin of the Electrical Products Division to a range of 15% to 19% in 2020. As part
of the transaction, ABB has established a long-term strategic supplier relationship with GE to provide ABB products and solutions. The acquisition
also includes long-term rights to use the GE brand.
Sparing no effort in comprehensive execution
ABB continues to benefit from ongoing cost management and productivity improvements. In the second quarter, pricing adjustments
and cost savings and other measures overcame the impact of rising raw material prices and supported the group”s annual sales cost savings target of 3% to 5%.
Based on ABB’s “Thousand Days Project” completed in 2017, the group continues to focus on quality and strengthen operations. Through the implementation of Lean
Six Sigma projects, ABB closely follows customer feedback, carefully analyzes and closes performance gaps. Currently,
ABB”s business divisions are responsible for more than 1,500 continuous improvement projects.
Business-led cross-functional collaboration
The expansion of strategic partnerships in the second quarter includes the establishment of a global strategic alliance
between ABB and Rittal based on previous successful cooperation to provide industrial-grade edge data center solutions, and the joint establishment of a software
alliance for collaborative robots with Kawasaki Heavy Industries .
ABB continues to strengthen its strategic brand positioning and cooperates with the ABB FIA Formula E Championship –
which provides an excellent platform for ABB to demonstrate its leading position in the field of electric transportation.
Outlook
Macroeconomic indicators in Europe and the United States are trending upward, and the Chinese market is also expected to
continue to grow. Overall, global markets maintain growth, but uncertainty remains high in parts of the world. Changes in oil prices and exchange rates will
continue to have an impact on the company”s performance.
In the long term, the energy revolution and the fourth industrial revolution have created positive development prospects for the three
major market areas of power, industry, transportation and infrastructure. With good market positioning, comprehensive market and regional coverage,
leading technology and outstanding financial capabilities, ABB aims to seize opportunities and achieve long-term profitable growth.
XVS-440-10MPI-1-1U Micro innovative touch screen
E511A09X3N Micro innovative touch screen
XV-460-15TXB-1-20 Industrial control panel
MK2-230-57MPN-1-10 Imported from Eaton’s original factory
STARTERKIT-XV100-PLC-MPI-DPM-RS485 Micro innovative touch screen
XV-460-57TQB-1-10 Imported from Eaton’s original factory
XN-16DO-24VDC-0.5A-P Imported from Eaton’s original factory
XV-102-B2-35TQR-10 Industrial control panel
XVH-340-57BAS-1-10 Imported from Eaton’s original factory
XN-1AO-I(0/4…20MA) Full range touch screen EATON
XV-440-10TVB-1-10 Micro innovative touch screen
XN-P4S-SBBC Eaton touch screen
XV-230-57MPN-1-13-1 Imported from Eaton’s original factory
MV4-690-TA2-XX3 Micro innovative touch screen
XNE-GWBR-PBDP Full range touch screen EATON
XV-102-D8-70TWR-10 Eaton touch screen
XV-102-B5-35MQR-10-PLC Eaton touch screen
XT-BCB-TP Industrial control panel
XV-440-10TVB-1-1U Eaton touch screen
XV440-10TVB-1-10 Micro innovative touch screen
XN-GW-PBDP-12MB Micro innovative touch screen
XP-503-15-A10-A00-1B Full range touch screen EATON
XVS-460-15MPI-1-10 Micro innovative touch screen
XVC-601-GTI-12-V1-000 Industrial control panel
SW-EPAM Imported from Eaton’s original factory
XN-KO/5 Micro innovative touch screen
MH2-330-57MPI-1-1S Full range touch screen EATON
XV-230-57CNN-1-10 Micro innovative touch screen
XN-GWBR-CANOPEN Micro innovative touch screen
5485KPMPP5000 Eaton touch screen
XN-S4T-SBBS Eaton touch screen
XVS-440-10MPI-1-1U Eaton touch screen
XVS-460-57MPI-1-10 Imported from Eaton’s original factory
XN-4DI-24VDC-P Micro innovative touch screen
MK2-252-57MPN-1-10 Eaton touch screen
XVS-440-10MPI-1-1U Full range touch screen EATON
XV-102-A5-35MQR-10 Imported from Eaton’s original factory
XVS-440-12MPI-1-10 Full range touch screen EATON
MC2-100-82FGBK-1-1N Industrial control panel
XNE-4AO-U/I Industrial control panel
XVS-440-12MPI-1-10 Industrial control panel
STARTERKIT-XV100-PLC-CAN-RS485-EC4E Full range touch screen EATON
MC2-440-12TSB-1-1KVAR07 Eaton touch screen
XV-440-10TVB-X-13-1 Imported from Eaton’s original factory
MC2-442-57CQB-1-31 Industrial control panel
XV-102-D6-57TVRC-10 Industrial control panel
XV-102-D6-70TWRC-10 Full range touch screen EATON
XVS-440-10MPI-1-1AFVAR12 Imported from Eaton’s original factory
XCC-601-DVI-V1-000 Full range touch screen EATON
XVS-440-57MPI-1-10 Imported from Eaton’s original factory
XVS-460-10MPI-1-10 Eaton touch screen
MH2-342-57SKS-1-10 Full range touch screen EATON
MEMORY-CF-BRS-3 Eaton touch screen
XV-442-57CQB-1-10 Industrial control panel
XV-102-B0-35TQR-10-PLC Micro innovative touch screen
XV-440-10TVB-1-10 Full range touch screen EATON
XN-S4T-SBCS Eaton touch screen
SW-CAN-MONITOR Full range touch screen EATON
XN-S4T-SBBS Industrial control panel
XV-152-D0-84TVR-10 Industrial control panel
MC2-442-57CQB-1-2A Imported from Eaton’s original factory
MH2-340-57CAN-1-10 Imported from Eaton’s original factory
XVH-340-57CAN-1-50 Eaton touch screen
XV-152-D4-57TVR-10 Industrial control panel
XN-S4S-SBBC Imported from Eaton’s original factory
XN-P4S-SBBC-B Imported from Eaton’s original factory
XVM-450-65TVB-1-11 Imported from Eaton’s original factory
XNE-GWBR-PBDP Imported from Eaton’s original factory
XV-252-57MPN-1-10VAR01 Industrial control panel
MC2-440-10TVB-1-50 Imported from Eaton’s original factory
MC2-440-10TVB-1-2I Micro innovative touch screen
DPM-MC2 Micro innovative touch screen
XNE-GWBR-CANOPEN Eaton touch screen
XVS-440-57MPI-1-1Z Industrial control panel
XV-440-10TVB-1-13 Industrial control panel
E511A09X3N Full range touch screen EATON
XV-102-D0-57TVR-10 Micro innovative touch screen
XN-WEW-35/2-SW Industrial control panel
XVS-440-10MPI-1-1U Micro innovative touch screen
XV-102-D6-70TWRC-10 Imported from Eaton’s original factory
XV-102-E6-70TWRC-10 Eaton touch screen
XV-102-D8-57TVR-10 Industrial control panel
XV-102-B5-35TQR-10-PLC Full range touch screen EATON
XV-102-D6-70TWRC-10 Micro innovative touch screen
XV-102-H3-35TQRL-10 Full range touch screen EATON
XV-442-57CQB-1-1AB Eaton touch screen
XN-QV/2 Imported from Eaton’s original factory
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