ABB signs five-year deal with Bombardier Transportation worth up to US$ 500 million

Alliance agreement to supply railway traction components

Zurich, Switzerland, November 13, 2003 - ABB, the leading power and automation technology group, said today it has signed a five-year alliance agreement with Bombardier Transportation, the global leader in the rail equipment manufacturing and servicing industry.

The agreement establishes a general framework for the business relationship and procurement transactions between Bombardier Transportation and ABB. It is the first such agreement signed by Bombardier Transportation with any of its suppliers.

Under the terms, ABB will deliver railway components like traction transformers, traction motors, power semiconductors, power electronic products and low-voltage apparatus.

The agreement is potentially worth US$ 500 million.

“The blend of power and automation technologies involved in this agreement reinforces the synergy among ABB’s core businesses. At the same time, the agreement is a cornerstone formalizing the mutual interests of Bombardier Transportation and ABB,” said Peter Smits, head of ABB’s Power Technologies division. “It reaffirms our position as supplier of choice and a reliable long-term partner.”

A key target of the agreement is the reduction of production cycle time to increase speed of delivery and maximize production efficiency. Operational units of ABB and Bombardier Transportation are already collaborating on design processes, and moving towards closer
communication and business processes.

ABB ( 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 ope rates in around 100 countries and employs about 120,000 people.

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