ABB realigns transformer manufacturing business
The strategic realignment includes an expansion to the Varennes, Que., factory and the closure of the St. Louis, Mo., location
Nov. 7, 2017 - ABB has announced a strategic realignment of its global transformer manufacturing, engineering and service footprint — a move that will “enhance competitiveness in a dynamic market environment marked by increasing competition and consolidation in the rail industry,” it says.
The restructure is part of the ‘Power Up’ transformation program in ABB’s Power Grids division.
“This footprint optimization will enhance competitiveness and strengthen ABB’s global leadership in transformers by better aligning the business to reflect changing market dynamics,” said Claudio Facchin, president of ABB’s Power Grids division.
In Canada, ABB will expand its medium and large power transformer factory in Varennes, Que., in an effort to better serve the market.
In the United States, ABB will consolidate its power transformers manufacturing footprint by investing in its South Boston and Crystal Springs units. It will also discontinue production at its unit in St. Louis, Mo., which will continue to focus on engineering and service activities. As well, it will establish new traction transformer manufacturing facilities at its South Boston unit to serve rail industry needs.
In Europe, production of traction transformers will be consolidated in Lodz, Poland, which will become the main manufacturing hub for rail customers in the region. ABB plans to continue manufacturing prototypes and smaller quantities at its facility in Geneva, which will remain the centre of excellence for the technology and be an innovation centre for energy efficiency and sustainable mobility solutions. Capacity will also be expanded for power and distribution transformers at the Lodz unit.
In Asia, Middle East and Africa, in order to serve growing market needs and enhance customer proximity, ABB will expand its traction transformer operations in India, supporting the government’s ‘Make in India’ initiative. The company will also invest in upgrading its Datong traction transformer facility in China to improve efficiency and meet growing demand. Earlier this year, ABB inaugurated a new traction transformer facility in South Africa, in line with the government’s local procurement requirements.
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