ABB launches new turbocharger manufacturing base in Chongqing

Maintain steady investment pace during economic recession

Chongqing, August 25, 2009 – ABB, the leading power and automation technology group, today inaugurated a brand new turbocharger manufacturing base in Degan Industrial Park, in Jiangjin District of Chongqing, localizing and producing latest turbocharging products which can improve diesel engine output by 300% and increase fuel efficiency by 10%.

This new facility of ABB Jiangjin Turbo System Co. Ltd., occupying a total land area of 73,000 m2 and a building space of 21'000 m2, is three times bigger than its old site. It is one of the three global turbocharging manufacturing bases of ABB, who is the No. one supplier with over 30% market share of turbochargers of 500 kW and above, focusing to support customers in marine, railway and power plant areas.

“We don’t want to make the financial crisis a ‘waste’. We will keep reinforcing our technologies and manufacturing capability based on the future needs of our customers”, said Brice Koch, ABB Group Senior Vice President and ABB China Chairman. “We planned to invest 150 million US dollars in China this year and have new construction and expansion projects in 7 out of the 27 ABB local facilities.”

ABB has been active in the China turbocharger market for many years, starting with a license agreement 30 years ago and then continued in the joint venture company ABB Jiangjin Turbo System Co. Ltd from 2006 with our partner Chongqing Jiangjin Turbo & Charger Machinery. The joint venture company, with ABB’s forefront technology and production line based in Chongqing, and 6 service stations along the China’s east coast cities (Shanghai, Hongkong, Guangzhou, Tianjin, Dalian and Qingdao), soon established itself as the No. one supplier in China with large size turbochargers.

So far, ABB turbochargers have been chosen for many important projects, including being installed in the high-power locomotives on Qinghai-Tibet Railway, in all the Dongfeng 11G locomotives for the 5th national large-scale railway speedup, in the Cape-size bulk carriers manufactured by Shanghai Waigaoqiao Shipbuilding Co., Ltd. ABB’s products have also been widely deployed in container and cargo vessels operated by Cosco, China Shipping, China Changjiang Shipping, etc.

Ulrich Birch, head of ABB Turbocharging in China said, “the new facility, allowing us to localize the very latest turbocharger technology which already fulfills future emission and efficiency standards, will enable ABB Jiangjin Turbo Systems to further spread its wings.”

The new manufacturing base houses advanced facilities, including fully air-conditioned workshops, advanced manufacturing machinery, energy saving and rainwater collection facilities, will not only improve product quality and working efficiency, but will also cut more than 35% energy consumption and 10,000 tons of water consumption each year, compared with conventional buildings.

The new site will allow ABB to initiate local production of many of its product series, including the TPS, TPL and TPR which are three mainstream product series and enjoy great popularity around the world. ABB’s latest A100 series is expected to be brought into local production in the new site, which will be a significant step in the development of single-stage, high-efficiency, high-pressure turbocharging systems and will set a new industry standard with highest compression ratios for modern diesel and gas engines.

With 100-year experience in the research, development and production of turbocharging systems, ABB has currently190,000 turbochargers in operation in the world, supported by more than 100 ABB service stations over 60 countries.

ABB has built a strong presence in Chongqing, with 1600 employees, two joint venture companies including ABB Jiangjin Turbo System and ABB Chongqing Transformers, one branch office and one process automation service centre.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 120,000 people. ABB has a full range of business activities in China, including R&D, manufacturing, sales and services, with 15,000 employees, 27 joint ventures and wholly owned companies, and an extensive sales and service network across 60 cities.

For help with any technical terms in this release, please go to: www.abb.com/glossary

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