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ABB - Abb News Story

$34.22 1.0  2.9%

Last Trade - 14/05/21

Sector
Industrials
Size
Large Cap
Market Cap £48.94bn
Enterprise Value £50.20bn
Revenue £19.03bn
Position in Universe 186th / 6846

UPDATE 1-ABB begins construction of new robotics factory in Shanghai

Thu 12th September, 2019 7:15am
(Adds company comment)
    By John Revill
    ZURICH, Sept 12 (Reuters) - ABB  ABBN.S  has started
construction of a new robotics factory in Shanghai, China, the
Swiss engineering company said on Thursday, shrugging off
concerns about a slowdown in the world's second-largest economy.
    ABB, which competes with Japan's Fanuc Corp.  6954.T  and
Germany's Kuka  KU2G.DE  in building industrial robots used in
the automotive sector among others, is spending $150 million on
the site due to open in early 2021.
    The company predicts the global robot sales will grow from
$80 billion at present to $130 billion by 2025. China is the
world's largest robotics market, buying a third of all
industrial robots in 2017. At the new factory, ABB said robots
will make robots.  urn:newsml:reuters.com:*:nL8N1X706Y
    China's second-quarter economic growth slowed to its weakest
pace in at least 27 years as demand at home and abroad cooled in
the face of a bruising trade war with the United States.
 urn:newsml:reuters.com:*:nL4N24C277
    ABB itself recently said a slowdown from automakers in China
was hitting its robotics business, with orders falling 14%
during the second quarter.  urn:newsml:reuters.com:*:nL8N24Q0J8
    Still, the company said it remained confident about the
long-term potential of the Chinese market and was pressing ahead
with the new factory to replace its existing factory in
Shanghai.
    "Despite short-term market challenges, China's development
as a global manufacturing hub, the ongoing trend towards mass
customization and a rising shortage in skilled labor will
continue to create strong and lasting demand for automation
solutions in the region," said Sami Atiya, president of ABB’s
Robotics and Discrete Automation business.

 (Reporting by John Revill, editing by Riham Alkousaa)
 ((John.Revill@thomsonreuters.com; +41 58306 7022; Reuters
Messaging: john.revill.thomsonreuters.com@reuters.net))
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