ABB wins $28-million contract in Turkey

Power equipment to ensure reliable electricity supply for new steel plant

Zurich, Switzerland, July 11, 2008 - ABB, the leading power and automation technology group, has won a $28-million contract for equipment to provide a new steel plant in Turkey with the reliable power supply needed to ensure high-quality production.

The project is the largest single private investment in the iron and steel industry in Turkey and will have the capacity to produce 2.5 million tons of hot flat-rolled products and 1.2 million tons of cold rolled products. The plant will also produce galvanizing steel, dyed sheet steel and rolled steel.

ABB will supply technology including a Static Var Compensator (SVC), which compensates for fluctuations in the voltage and current of power supplies that can harm production quality in industrial plants. The contract was awarded by MMK-ATAKAS, a joint partnership between Atakas Metallurgy and Port Management Inc. (Turkey) and Magnitogorsk Iron and Steel Works (MMK), a Russian company.

“This is an excellent example of ‘one-stop’ shopping,” said Peter Leupp, head of ABB’s Power Systems division. “The technical support provided by ABB experts in the initial phase proved extremely worthwhile for the customer and we collaborated closely on the development of a tailored solution.”

The order includes transformers, high- and medium-voltage switchgear, a substation SCADA (supervisory control and data acquisition) system, and FACTS (flexible AC transmission system). In addition to the SVC system, ABB will supply four power transformers, a 380/34.5-kilovolt (kV) complete turnkey switchyard, and a 72.5-kV open switchyard. The company will also supply and install medium-voltage panels along with the SCADA and communications system.

The initial phase of the project is scheduled to be operational by April 1, 2009. Backed by more than 30 years of experience in SVC systems for the steel industry, ABB solutions will shorten melting times and decrease energy loss, lowering energy costs and reducing consumption of materials.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs more than 110,000 people.

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