ABB realigns automation divisions in a move said to enhance growth opportunities

ABB 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.

11/30/2009


ABB Group structure, Nov. 26, 2009

ABB Group structure, Nov. 26, 2009

Learn more at about the ABB restructuring from ABB .

Also read from MBT:

- ARC reports: ABB tops process automation market share worldwide ; and

- Discrete model: ABB exec says linking power and automation technologies holds great economic appeal

 

ABB, manufacturer of power and automation technologies and solutions, is reorganizing its automation divisions to align activities more closely with those of customers. ABB says the changes will enable the company to take advantage of 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 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.

ABB (www.abb.com) says it is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in approximately 100 countries and employs about 120,000 people.

- Edited by Mark T. Hoske, electronic products editor, Manufacturing Business Technology, MBT www.mbtmag.com





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Learn how to create value with re-use; gain productivity with lean automation and connectivity, and optimize panel design and construction.
Go deep: Automation tackles offshore oil challenges; Ethernet advice; Wireless robotics; Product exclusives; Digital edition exclusives
Lost in the gray scale? How to get effective HMIs; Best practices: Integrate old and new wireless systems; Smart software, networks; Service provider certifications
Fixing PID: Part 2: Tweaking controller strategy; Machine safety networks; Salary survey and career advice; Smart I/O architecture; Product exclusives
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Look at the basics of industrial wireless technologies, wireless concepts, wireless standards, and wireless best practices with Daniel E. Capano of Diversified Technical Services Inc.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.