2014-05-14 - Over two decades, ABB LP’s local growth has mirrored – and supported – China’s economic expansion
Beijing, China, 13 May 2014 – ABB’s Low Voltage Products division is celebrating its 20th anniversary in China, marking two decades where the business’s local expansion has mirrored as well as supported the country’s strong economic development.
Also this week, Low Voltage Products division head Tarak Mehta announced 58 product launches in China for 2014, across its full portfolio.
After investing in plants in Xiamen and Beijing in 1994, ABB Low Voltage Products’ first Chinese delivery consisted of 17 panels of low-voltage switchgear, for the Suzhou Post Office. In 1995, the factories produced around 200 panels of MNS Low Voltage switchgear.
Increased urbanization, China’s economic growth drive demand
Today, that capacity has increased to 36,000 panels annually, nearly all of them destined for the domestic market as increased urbanization and China’s continued economic growth are driving demand for LP’s products and solutions.
With now four manufacturing facilities, two logistics centers and sales activities in 270 cities, China has become Low Voltage Products’ second-largest market after only the United States. It’s become a benchmark for the entire business when it comes to understanding local markets, competition and attracting and developing home-grown talent.
“We started our business here in 1994 and have built a very strong team,” Mehta said. “In 2013, we further invested in our sales force to ensure our customers have the best support in the industry.”
New manufacturing, R&D facility
China is a large, developing market with vast depth and breadth, with increasing significance for ABB. The company recently announced its $300 million investment for manufacturing and research & development in Xiamen. Low Voltage Products will be a key part of this project, Mehta said.
ABB’s Low Voltage Products division is a leading provider of a full range protection, control and measurement solutions, for a wide range of electrical installations, enclosures, switchboards, electronics and electro-mechanical devices across all major industries including the residential sector.
In China, the division quickly grasped the necessity for local innovation to accommodate quickly evolving perceptions of values, brands and standards among Chinese customers.
58 new, replacement products to be introduced in China this year
Among the 58 new and replacement products to be introduced in 2014 here is a wireless home automation solution, developed in China and due to be unveiled at Automation World China in Guangzhou on Wednesday.
There are also new AX Contactors that significantly cut material use and reduce parts variance by 90 percent; the Emax 2, the world’s first integrated circuit breaker and power manager; and a SmissLine system that includes an intelligent Power Distribution Unit aimed at, among other things, helping data centers achieve important energy savings.
“The strong focus on innovation, manufacturing and business performance and customer service are truly world class,” Mehta said.
20th anniversary event
To mark the division’s 20th anniversary in China, the business is hosting an event for 400 customers in Beijing.
“We would like to thank our customers, our stakeholders and our employees for their support and dedication which has led to our success,” said PC Gay, head of the Low Voltage Products division in China. “We are delighted to mark this milestone and we are committed to serve our key stakeholders well for the next 20 years - and beyond.”
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