ABB expands motor manufacturing capacity in China

Production of energy-efficient motors increased to meet rising demand

Dec 10, 2007, Shanghai, China – ABB, the leading power and automation technology company, broke ground today for a new production facility at the ABB Shanghai Motor Co., Ltd. The new factory will provide an additional 26,000 square meters of work space, and is expected to be operational by July 2009.

The ABB Shanghai Motor Co., Ltd. specializes in the production of low-voltage motors to various specifications depending on customer need. Nearly half of its production is exported. This year, the company was ranked among China's top 100 electric companies.

"ABB motors are widely acclaimed for their reliability and energy-efficiency,"said Remo Luetolf, head of automation products division of ABB North Asia Region. "Demand for such motors consistently is growing above market average."

The expansion will help meet rising demand for energy-efficient technology regionally, and house the first ever Chinese production line for ABB's advanced M3 series of low-voltage motors, which comply with European tier one energy-efficiency standards.

"Chinese industry uses electric motors in vast numbers and the potential for saving energy is substantial," added Remo Luetolf. "ABB's motors are 1.5 to 3 percent more efficient than the average."

ABB motors sold in China to date save more than 2 billion kilowatt hours (kWh) of electricity every year, equivalent to the annual consumption of 1.5 million Chinese households. Replacing the country's remaining inefficient motors could save a further 33 billion kWh per year.

Global investments to improve industrial productivity and energy efficiency are driving ABB's growth in China and around the world. In 2007, ABB will invest a further US$100 million in China to refurbish and expand its existing local enterprises.

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 about 100 countries and employs more than 110,000 people. ABB has a full range of business activities in China, including R&D, manufacturing, sales and service, with 12,000 employees, 25 joint ventures and wholly owned companies, and an extensive sales and service network across 38 cities. To know more about ABB, visit www.abb.com.cn.

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