ABB inaugurates new power capacity venture in China

Participates nation's transmission of clean electricity from West to East

Xian, March 26, 2002 - ABB, the global power and automation technology group, announced today it has inaugurated a new company called ABB Xian Power Capacitor Co. Ltd. in Xian, China. The plant specialized in manufacturing of internal-fuse power capacitor units as well as applications such as filter banks, shunt capacitor banks and series capacitor banks to improve electric power quality.

"The new product range complements to our product portfolio in China. It further reflects ABB's long-term commitment to contribute to the sustainable development of China," said Peter Leupp, President and Country Manager of ABB (China) Ltd. The new company recently received a major order to supply AC fileter capacitor banks for the two converter stations of the Guizhou - Guangdong 500 kV HVDC Transmission Project. The total capacitor rating of the two stations is about 4,100 MVAr, and valued around 10 million USD.

"We are proud to participate in the nation's broad western region development strategy to transmit 10,000 MW of electricity to Guangdong area during the tenth 5-year plan," said, Mr. Leupp. "In fact, this is our second major contract in the past months due to our matured technology, high reliable product and compact design that reduces site space."

Josef A. Dürr, responsible for ABB's worldwide business area high voltage technology, underlines the benefit for the Chinese joint venture being part of an international technology network: "This is another good example how the Three Gorges Project allows ABB to transfer its most modern state of the art technology to China and to make it accessible for all our customers in the country." This will further strengthen our competitve advantage in China, which continues to be one of the most important markets, he says.

The filter capacitor banks are for direct connection to the 500 kV system and are an integral part of the HVDC converter stations. They are used both to reduce unwanted higher frequency harmonics that result from the AC/DC conversion and to provide reactive power. As a result, the quality and efficiency of the power transmission is improved.

ABB (www.abb.com) is a global leader in power and automation technologies that enable utility and industry customers to improve performance while lowering their environmental impact. ABB has 155,000 employees in more than 100 countries. In China, ABB engages a workforce of 6,000 people in 27 companies.


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