Home » ABB realigns automation divisions
ABB realigns automation divisions
Zurich, Switzerland – ABB, the leading power and automation technology group, is reorganizing its automation divisions to align their activities more closely with those of its customers. These changes will enable ABB to better tap growth opportunities in service, expand its presence in the discrete manufacturing sector and better respond to the increasing demand for energy efficient solutions.
Effective Jan. 1, 2010, the business units currently in the Automation Products and Robotics divisions will be regrouped into two new divisions – Discrete Automation and Motion, and Low-Voltage Products. The Process Automation division will remain unchanged except for the addition of the instrumentation business from the Automation Products division.
“ABB’s automation businesses with their focus on productivity and energy efficiency have tremendous scope for growth,” said Joe Hogan, ABB’s chief executive officer. “We have strengthened the market approach by grouping together businesses with similar customers, technologies and service models, which will help us accelerate the development of solutions for our customers.”
The new divisions will be comprised as follows:
The new Low-Voltage Products division includes businesses producing mainly low-voltage electrical equipment that is sold to wholesalers, original equipment manufacturers as well as system integrators, and has moderate service requirements. The division had 2008 pro-forma revenue of $4.8 billion and about 19,000 employees.
The new Discrete Automation and Motion division includes products and systems targeted at discrete manufacturing applications, such as robotics and programmable logic controllers (PLCs), and providing motion in plants, such as motors and drives. These businesses help customers to increase the productivity and energy efficiency of their assets. It also includes a significant offering for the renewable sectors of solar and wind, as well as the rail segment. The businesses sell mainly to original equipment manufacturers, system integrators and directly to end users, and require a more intensive, tailored level of service. The division had 2008 pro-forma revenue of $6.6 billion and also about 19,000 employees.
Process Automation will remain unchanged except for the addition of ABB’s instrumentation business, currently part of the Automation Products division. The move will strengthen the division’s process automation platform as instruments measuring temperature, flow, pressure, etc. are key to optimizing industrial processes. The division had 2008 pro-forma revenue of $8.4 billion and about 29,500 employees.
ABB intends to provide pro-forma orders, revenues and earnings before interest and taxes (EBIT) for the period 2007 to 2009 under the new structure when it reports its fourth-quarter results in February next year. The company will also update at that time the divisional guidance on its 2007-2011 targets, to align them with the new organization.
The reorganization of the automation businesses will be accompanied by several related leadership changes as of Jan. 1, 2010.
Tom Sjökvist, currently responsible for Automation Products, will become head of the new Low-Voltage Products division. Sjökvist has provided successful leadership for the low-voltage business for many years and has driven the Automation Products division to new levels of profitability.
Ulrich Spiesshofer, currently responsible for Corporate Development on the Executive Committee, has been appointed to run the Discrete Automation and Motion division. Spiesshofer, who joined ABB in 2005, has led ABB’s strategic growth initiatives, such as its service activities, and has played a key role in managing the company’s global footprint optimization efforts and its $2-billion cost take-out program
Anders Jonsson, currently responsible for the Robotics division, will have an Executive Committee role with responsibility for continuing the implementation of ABB’s current cost take-out program as well as the company’s Global Footprint program, which aligns ABB’s resources with the company’s growth opportunities. Jonsson has successfully repositioned the robotics business for long-term profitable growth.
Veli-Matti Reinikkala remains head of the Process Automation division.
ProComSol Distributes PowerXpress HART Power Solution
ProComSol Announces It Now Distributes PowerXpress HART Calibration Power Solution
West Texas Investigation Hampered by Inter-Agency Cat Fight
ATF and CSB in dispute about access to plant, witnesses, evidence.
News You Might Have Missed This Week from ControlGlobal and Elsewhere
Our Recap of Stories, Events and Ideas Floating Around the Internet Now
Fieldbus Foundation Launches Project Gemstone
New initiative is designed to make the fieldbus experience easier, more application-centered.
Pressure Sensors Monitor Remote Field Safety Trailers
AST Pressure sensors are used to monitor Nomadic safety trailers in the field in remote oil field locations.
Great Moments in Process Automation History
Take a broken soda fountain machine, a car a.c. unit, flavor mixes, water and CO2, add inventiveness; you get America’s favorite frozen drink.
Smart Grid: Independent Testing Of Rossi's E-Cat Cold Fusion Device Shows Positive Results
Forbes magazine's tech contributor Mark Gibbs writes that independent testing of Andrea Rossi's E-CAT Cold Fusion Reactor has positive results.The implications of the possible commercialization of cold fusion power sources are incredible.
Compressor Controls: Saudi Aramco Buys First GE Compressor Control Systems
Saudi Aramco has purchased advanced compressor control technology from GE for the Haradh GOSP-1 facility in Saudi Arabia's Eastern Province.
SANS Control Security Training Coming to Houston
SANS Institute will hold ICS Security Training event on June 10-15 in Houston
ISA Training Through June in Houston
Technician training, engineering survival and SIS boot camps for condensed, intense, comprehensive educational experience.
- All news »
Access the entire print issue on-line and be notified each month via e-mail when your new issue is ready for you. Subscribe today.
- Featured White Papers