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A ‘strategic realignment’ of ABB's transformer manufacturing activities was announced on November 6, reflecting what the company said was a ‘dynamic market environment marked by increasing competition and consolidation in the rail industry.’
In the USA, the company is to consolidate power transformer manufacturing at its South Boston and Crystal Springs sites, discontinuing production in St Louis, Missouri, which will focus on engineering and service activities. In addition, ABB will establish new traction manufacturing facilities at South Boston to serve the rail industry, and expand its medium and large power transformer factory in Varennes, Canada, to serve the Canadian market.
In Europe, production of traction transformers will be consolidated at Łódź, which will become the main manufacturing hub for rail customers in the region. ABB plans to continue manufacturing prototypes and smaller quantities in Genève, which will remain a technology centre of excellence and be an innovation center for energy efficiency and sustainable mobility. Capacity will also be expanded for power and distribution transformers at Łódź, bringing economies of scale and making it a major transformer hub for ABB.
ABB is to expand its traction transformer operations in India, supporting the government’s Make in India initiative, and upgrade its Datong facility in China. Earlier this year it inaugurated a traction transformer facility in South Africa, in line with the government’s local procurement requirements.
‘This footprint optimisation 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. ‘The realignment is part of our Power Up transformation programme and ABB’s Next Level strategy.’
This article first appeared on www.railwaygazette.com
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