Profile: ABB Ltd (ABB)

ABB Ltd (ABB), incorporated in March 5, 1999, is a global provider of power and automation technologies to utility and industry customers. The Company’s focus on power transmission, distribution and power-plant automation serves electric, gas and water utilities, as well as industrial and commercial customers. ABB also delivers automation systems that measure, control, protect and optimize plant applications across a range of industries. The Company’s business comprises five divisions: Power Products, Power Systems, Automation Products, Process Automation and Robotics. Its Power Products and Power Systems divisions operate in the power market. Its Automation Products, Process Automation and Robotics divisions operate in the automation market. The Company operates in approximately 100 countries and has structured its global organization into four regions: Europe, the Americas, Asia, and the Middle East and Africa (MEA). In October 2009, ABB Ltd. announced the acquisition of Sinai Engineering Corporation.

On August 25, 2008, ABB completed the acquisition of Kuhlman Electric Corporation (Kuhlman), a United States-based transformer company. In May 2008, the Company acquired the business of Vectek Electronics, a New Zealand company with technology that improves the quality of the power supply in industrial installations. During the year ended December 31, 2008, the Company sold its 50% stake in the shares of ABB Powertech Transformers, located in South Africa, to Powertech, a wholly owned subsidiary of the Altron Group.

Power Products Division

The Power Products division serves electric, gas and water utilities, as well as industrial and commercial customers, with a range of products and services for power transmission and distribution. Direct sales account for a majority of the division's total product sales, and sales through external channel partners, such as wholesalers, distributors and original equipment manufacturers (OEMs), account for the remainder. Key technologies include high and medium-voltage switchgear and apparatus, circuit breakers for various current and voltage levels, power and distribution transformers, as well as sensors and products to automate and control electrical and other utility networks.

The Power Products division manufactures three categories of products: high-voltage products, medium-voltage products and transformers. The division sells primarily to utilities, distributors, wholesalers, installers and OEMs in the utilities and power generation industries. Some of the division's products are integrated into the offering of the Power Systems and Process Automation divisions, or are sold through external channel partners, such as engineering, procurement and construction (EPC) firms.

The Power Products division manufactures distribution transformers (up to 72.5 kilovolts) for use in industrial facilities, commercial buildings and utility distribution networks to step down electrical voltage to the levels needed by end users. Industrial transformers are mainly delivered to the steel and aluminum industry, which need their own high-voltage transformers and substations onsite to service their heavy electricity requirements. The Company manufactures and sells a range of distribution transformers including oil-type, dry-type and special application distribution transformers. It also designs and manufactures power transformers (72.5 to 1,000 kilovolts) for utility, transportation and industrial customers, as well as transformer components, such as bushings and tap changers. ABB produces traction transformers used in electric locomotives, and provides a range of transformer service and retrofit solutions for utilities and industry customers. The division also produces insulation material.

In the medium-voltage area, the division develops products and systems that reduce outage times and improve power quality and control. It supplies switching equipment both directly to end users and through distributors and OEMs. Its products provide connections between higher-voltage substations and lower-voltage uses. It produces a line of medium-voltage equipment (1 to 50 kilovolts), including products, such as indoor and outdoor switch disconnectors, breakers, reclosers, fuses, contactors, instrument transformers and sensors, as well as air and gas-insulated switchgear, motor control centers, and ring main units for primary and secondary distribution. The Power Products division also provides high-voltage transmission equipment to power utilities. It manufactures the principal components of power transmission systems (50 to 800 kilovolts), including air and gas-insulated switchgear, capacitors, high-voltage circuit breakers, grounding switches and instrument transformers.

The Company competes with Siemens AG, Areva, Schneider Electric SA, Cooper Industries, Eaton Electric Corporation, Crompton Greaves and Bharat Heavy Electricals Ltd.

Power Systems Division

The Power Systems division serves electric, gas and water utilities, as well as industrial and commercial customers, with a range of systems and services for power generation, transmission and distribution. Key technologies include substations, high-voltage power converters, advanced cables for underground and sub-sea power transmission, and systems to automate and control power plants, electrical and other utility networks. The Power Systems division delivers systems in four areas: grid systems, network management, power generation and substations. The division sells primarily to utilities, EPC companies and power generation industries. Some of the Power Product division's products are integrated into the offering of the Power Systems division. For grid systems, the Company provides power systems that are essential to grid reliability, including flexible alternating current transmission systems (FACTS). ABB also sells high-voltage direct current (HVDC) systems. Critical components in these systems are power semiconductors and cables, which are also manufactured by the Power Systems division.

ABB is a manufacturer of HVDC technology, which is an advanced technology for transporting electricity over long distances, feeding power from mainland sites to offshore platforms or integrating large offshore wind power into the power grid. It has introduced a system called HVDC Light. HVDC Light extends the range of applications for underground or submarine high-voltage direct current (DC). The Company also provides FACTS devices to enhance power grid stability. FACTS devices include series compensators, static volt-amperes reactive compensators (SVCs) and SVC Light (based on the same technology as HVDC Light). HVDC, HVDC Light, FACTS, and SVC Light systems rely on advanced power semiconductor components. Its power semiconductor business develops and manufactures components. The Power Systems division supplies power semiconductor devices to other ABB businesses and to external customers in the power transmission and distribution, drives and transportation markets. Its cable business is specialized in sub-sea cable solutions and land-cables for bulk energy transfer over long distances. The division also provides wireless and fixed communication systems for power, water and gas utilities, including both operational and corporate communication networks.

The Company competes with Siemens AG, Areva, Emerson Electric Co., General Electric Company and Invensys plc.

Automation Products Division

The Automation Products division provides products, with related services, that are used as components in machinery, switchboards, distribution panels, and building and automation systems. The Automation Products offering covers a range of products and services, including low-voltage switchgear, breakers, switches, control products, DIN-rail components, enclosures, wiring accessories, instrumentation, drives, motors, generators, and power electronics systems. Key applications include power distribution, protection and control, energy conversion, data acquisition and processing, and actuation.

The Automation Products division manufactures low-voltage circuit breakers, switches and control products to protect people, installations and electronic equipment from electrical overloads. It also manufactures instrumentation products to measure and control the flow of fluids. This division makes line protection products, wiring accessories and enclosures and cable systems that are primarily used for control and protection in building installations. It also produces European Installation Bus/Powernet systems, which integrate and automate a building's electrical installations, ventilation, security and data communication networks. This division also provides low-voltage and medium-voltage AC drive products and systems for industrial, commercial and residential applications. The Automation Products division produces a range of power electronics products. These include static excitation and synchronizing systems that provide stability for power stations, as well as high-power rectifiers that convert alternate current (AC) power to DC power for very high-amperage applications, such as furnaces in zinc plants and aluminum and magnesium smelters. In addition, this division supplies a range of electrical motors and generators.

ABB competes with Alstom, Baldor Electric Company, Eaton Electric Corporation, Emerson Electric Co., Endress+Hauser, Legrand, Mitsubishi, Rockwell Automation, Schneider Electric SA, Siemens AG, Yokogawa Electric Corporation and WEG Industries.

Process Automation Division

The Process Automation division provides products, systems and services for the automation and optimization of industrial processes. The Process Automation division offers integrated process control systems, plant electrification systems, information management systems and industry-specific application knowledge for a variety of industries, primarily pulp and paper, minerals and mining, metals, chemicals and pharmaceuticals, oil and gas, turbocharging, power and the marine industry. Some of the Automation Product and Power Product divisions' products are integrated into the offering of the Process Automation division.

The Process Automation division emphasizes open control systems, including batch control systems, supervisory control and data acquisition systems, and to a lesser extent, programmable logic controls and remote terminal units. It offers the System 800xA process automation platform. This system extends the capability of traditional process control systems, introducing advanced functions, such as batch management, asset optimization and field device integration, which plug in to a common user environment. The Company offers its customers in the metals and minerals industries specialized products and services, as well as total production systems. It designs, plans, engineers, supplies, erects and commissions electric equipment, drives, motors and equipment for automation and supervisory control within a variety of areas, including mining, mineral handling, aluminum smelting, hot and cold steel applications and cement production.

In the oil and gas sector, ABB provides solutions for onshore and offshore production and exploration, refining and petrochemical processes, and oil/gas transportation and distribution. In the pharmaceuticals and fine chemicals areas, it offers applications to support manufacturing, packaging, quality control and compliance with regulatory agencies. In the marine field, it provides global shipbuilders with power and automation technologies for luxury cruise liners, ferries, tankers, offshore oil rigs and special purpose vessels. ABB designs, engineers, builds, supplies and commissions electrical systems for marine power generation, power distribution and diesel electric propulsion, as well as turbochargers to improve efficiency for diesel and gasoline engines.

The Company competes with Emerson Electric Co., Honeywell International Inc., Invensys plc, Metso Automation, Rockwell Automation, Schneider Electric SA, Siemens AG, Voith AG, Aspen Technologies and Yokogawa Electric Corporation.

Robotics Division

The Robotics division offers robot products, systems and service for the automotive and manufacturing industries. The division develops standardized manufacturing cells for many applications, including machine tending, welding, cutting, painting, finishing and packing. The division also provides a range of robotics services, from product and system maintenance to system design. In the automotive industry, the division's products and systems are used in such areas as press shop, body shop, paint shop, power train assembly, trim and final assembly. General industry segments in which robotics solutions are used range from metal fabrication, foundry, plastics, food and beverage, chemicals and pharmaceuticals to consumer electronics, solar and wood. Typical general industry applications include welding, material handling, painting, picking, packing and palletizing. The Company’s services include design and project management, engineering, installation, training and lifecycle care of the complete production line.

ABB competes with Fanuc Robotics Inc., Kuka Robot Group, Yaskawa Electric Corporation, Durr AG, Kawasaki Robotics and Staubli AG.