ABB merging six automation businesses into three

Zurich, Switzerland—To increase market and operational simplicity, ABB has announced that it will merge its six Automation Technologies businesses into three globally focused businesses on Jan. 1, 2004.


Zurich, Switzerland— To increase market and operational simplicity, ABB has announced that it will merge its six Automation Technologies businesses into three globally focused businesses on Jan. 1, 2004. The company reports that its latest reorganization continues an evolution that began in late 2002, when ABB merged two automation-related divisions, and combined 11 businesses into six.

Martinus Brandal, an 18-year ABB veteran, will head the new Process Automation business, which will blend ABB’s control products; petroleum, chemicals and life sciences; and paper, minerals, marine and turbocharging units. Frank Duggan, presently head of the petroleum and chemicals automation business, will manage global sales and business development, as well as indirect channel development. Teemu Tunkelo, current head of the control products business, will serve as technology leader and chief architect for process automation.

Tom Sjökvist, with more than 30 years at ABB, will lead the new Automation Products business, which will merge the current low-voltage products and instruments, drives, motors, and power electronics units. Anders Jonsson, now manager of the drives, motors and power electronics area, will drive operational excellence through cost focus, supply chain and sourcing, and strategic cost migration.

Bo Elisson, a 29-year ABB veteran, will continue to head the ABB robotics, automotive and manufacturing business, which will be renamed Manufacturing Automation, and will sharpen its focus on costs and innovation. This division has an installed base of more than 100,000 robots.

“To appreciate the logic of these new businesses, consider the needs of a major automation technologies user,” says Dinesh Paliwal, ABB’s group executive and head of the Automation Technologies division. “Just one year ago, our customers had to deal with 11 different ABB organizations to finalize a new strategic relationship. These customers rewarded our first steps toward simplicity with four consecutive quarters in which we achieved double-digit business improvement. Now, we’re entrusting the industry’s broadest range of automation technologies to just three empowered and exceptional global teams.”

ABB’s automation businesses produce products and solutions for motion, power, measurement, control and optimization in process and discrete applications. The Automation Technologies division employs about 56,000 people, and posted revenues of $8.5 billion in 2002. Overall, ABB employs about 120,000 people.

Control Engineering Daily News Desk
Jim Montague, news editor

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