By Ellen Cools
November 6, 2017 — ABB has announced a strategic realignment of its global transformer manufacturing, engineering and service footprint to enhance competitiveness in a dynamic market environment marked by increasing competition and consolidation in the rail industry, the company says.
The move is part of the ‘Power Up’ transformation program in ABB’s Power Grids division.
ABB will expand its medium and large power transformer factory in Varennes, Canada, to better serve the Canadian market.
In the U.S., ABB will consolidate its power transformers manufacturing footprint by investing in its South Boston and Crystal Springs units. It will also discontinue production at its unit in St. Louis, Missouri, which will focus on engineering and service activities.
Meanwhile in Europe, production of traction transformers will be consolidated in Lodz, Poland, which will become the main manufacturing hub for rail customers in the region. ABB plans to continue manufacturing prototypes and smaller quantities at its facility in Geneva.
Finally, in Asia, Middle East and Africa, ABB will expand its traction transformer operations in India. The company will also invest in upgrading its Datong traction transformer facility in China to improve efficiency and meet growing demand. Earlier this year, ABB also inaugurated a new traction facility in South Africa.
“This footprint optimization will enhance competitiveness and strengthen ABB’s global leadership in transformers by better aligning the business to reflect changing market dynamics,” said Claudio Facchin, president of ABB’s Power Grids division.