ABB invests $170 million in the U.S.
04 April 2023 - 2:00PM
- Investment reflects increased customer demand for
electrification and automation products
- Wisconsin greenfield facility for drives and services
demonstrates continued commitment to U.S. customers and
workforce
- Inflation Reduction Act supports company’s continued investment
in creating more secure supply chain and strengthening local
manufacturing
ABB is accelerating its growth strategy in the United States by
investing approximately $170 million and creating highly skilled
jobs in manufacturing, innovation and distribution operations. ABB
is committed to growing in the U.S. by investing in its
electrification and automation businesses that meet increased
demand from industry-leading customers, while supporting the clean
energy transition and the trend towards reshoring of production.
This commitment is highlighted by today’s pouring of the concrete
foundations for a greenfield drives and services facility in New
Berlin, Wisconsin. The U.S. is ABB’s largest market, comprising 24
percent of the company’s annual revenue.[1]
“The United States is critical to ABB’s success as a market that
will continue to grow and benefit from our product portfolio that
enables the transition to a more energy-efficient future,” said
Björn Rosengren, CEO of ABB. “Currently, 85 percent of ABB’s sales
in the U.S. are from products produced locally, which provides
customers with a more secure supply chain and keeps good-paying
manufacturing jobs in America.”
ABB technology touches every sector of the economy, from
transportation to utilities to buildings. Recently passed
legislation like the Inflation Reduction Act, CHIPS Act, and
Infrastructure Investment and Jobs Act, gives ABB confidence to
invest in manufacturing capacity, distribution systems and
technology innovation to bring products and services closer to
customers.
Investment projects underway across the U.S. include:
- New Berlin, Wisconsin: Opening of Drives and Services
manufacturing facility will increase U.S. production capacity of
industrial electric drives and provide additional customer
services. The business manufactures a wide range of AC
variable frequency drives and controls which reduce energy
consumption in buildings and industrial applications in the U.S.
market. The nearly $100 million greenfield investment is
expected to be completed in late 2024 and is replacing a
neighboring existing facility, which employs approximately 720
workers. Some 100 new jobs will be added over the next three
years.
- Memphis, Tennessee: Investing $3 million in the opening
of an Installation Products Research & Development Lab and
Innovation Center to accelerate development of new products. ABB
remains the seventh-largest private employer in Memphis.
- Atlanta, Georgia: Opening of packaging and logistics
facility for end-to-end robotic automation solutions in warehouse
and distribution, retail, and logistics industries. This $2 million
investment will open in 2023 and create approximately 15 jobs.
- Albuquerque, New Mexico: Previously announced $40
million investment in a new facility to manufacture Elastimold, the
leading brand for underground cable accessories, to support
strengthening a more sustainable U.S. electrical grid. It underpins
ABB’s commitment to improve reliability and resilience of the U.S.
infrastructure and assure greater safety for American consumers,
businesses, and communities. The investment will create 55 new jobs
and will be completed by 2024.
- Auburn Hills, Michigan: Previously announced expansion
of North American robotics headquarters and manufacturing facility
as more customers turn to automation to build resilience while
improving efficiency and flexibility as part of the near and
reshoring of production. The $20 million investment will create 72
jobs and be completed by the end of 2023.
- Lehigh Valley, Pennsylvania: Previously announced
opening of Installation Products Division Northeast Distribution
Center in 2023. This more than $4 million investment will create
more than 100 jobs and further regionalize ABB’s global supply
chain to help reduce delivery times of high-demand electrification
products to contractors by up to 50 percent.
- Columbia, South Carolina: Previously announced opening
of electric vehicle charger manufacturing facility to build up to
10,000 chargers per year, ranging from 20kW to 180kW in power, to
support operators building the national charging infrastructure.
ABB E-mobility’s investment will create over 100 jobs.
“The Inflation Reduction Act is triggering investment in clean
energy and supporting businesses that can produce technology
locally,” said Michael Gray, U.S. Country Holding Officer of ABB.
“More than ever before, ABB is designing and producing products
domestically to serve our U.S. customers, as they move toward more
sustainable electric power generation, clean energy manufacturing,
electric transportation, and industrial efficiency including carbon
capture and storage, as well as methane reduction.”
The U.S. federal government projects real gross domestic product
to increase 2.5 percent in 2023, average 2 percent annual growth
between 2024-2028, and grow 2.3 percent per year during
2029-2032.[2] This projected GDP growth, combined with an estimated
global EV infrastructure investment of more than $1 trillion by
2040[3], gives ABB the confidence to continue investing. ABB
projects 25 percent of global EV infrastructure investment will
take place in the U.S.
Since 2010, ABB has invested $14 billion in U.S. plant
expansions, operational improvements, state-of-the-art equipment,
products, and people, making it the company’s largest market. With
approximately 20,000 employees in more than 40 manufacturing and
distribution facilities, ABB is investing, growing and serving
customers across America through industries that create jobs,
encourage innovation and achieve a more productive, sustainable
future.
ABB is a technology leader in electrification and
automation, enabling a more sustainable and resource-efficient
future. The company’s solutions connect engineering know-how and
software to optimize how things are manufactured, moved, powered
and operated. Building on more than 130 years of excellence, ABB’s
~105,000 employees are committed to driving innovations that
accelerate industrial transformation. www.abb.com
[1] Based on 2022 ABB Group revenues
[2] Biden Administration 2023 budget
[3] BloombergNEF
- Image: ABB New Berlin, WI rendering
- Image: Increased customer demand for electrification and
automation products in the U.S.
Michael Touhill
ABB
(404) 680-7930
michael.touhill@us.abb.com
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