ABB aims to cash in on Belt & Road

China Daily (USA) - - BUSINESS - By ZHONGNAN zhongnan@chi­nadaily.com.cn

ABB Group, the Swiss power and au­to­ma­tion com­pany, wants to form more part­ner­ships with China’s power, trans­porta­tion and en­ergy com­pa­nies to de­velop en­gi­neer­ing, pro­cure­ment and con­struc­tion projects along the Belt and Road Ini­tia­tive, to fur­ther di­ver­sify its global sales, said its global head.

Ul­rich Spiesshofer, its chief ex­ec­u­tive of­fi­cer, said with three years of de­vel­op­ment, the Belt and Road Ini­tia­tive has proved to be a prac­ti­cal tool driv­ing the growth of both global and Chi­nese com­pa­nies.

Coun­tries such as Turkey, Rus­sia, Pak­istan and India as well as coun­tries in the Mid­dle East and Africa all have de­mand in their mar­kets to im­prove their power and in­fra­struc­ture sec­tors, which is at­trac­tive to these com­pa­nies.

The ini­tia­tive has brought new op­por­tu­ni­ties in over­seas projects for Chi­nese EPC com­pa­nies. Chi­nese com­pa­nies signed about 4,000 over­seas EPC con­tracts in 60 coun­tries and re­gions along the route of the ini­tia­tive in 2015, while the to­tal con­tract value reached $93 bil­lion, ac­cord­ing to data from theMin­istry of Com­merce.

ABB has pro­vided tai­lor­made trac­tion mo­tors for the 95 trains de­signed by CRRC Tang­shan Co Ltd for line 2 of the Izmir metro in Turkey.

The com­pany also of­fered a 220 kV main sub­sta­tion so­lu­tion to Sinopec for its EPC project in Atyrau Re­fin­ery, Kaza­khstan, as well as sup­ply­ing a 6,000met­ric ton per-day ce­ment pro­cess­ing line in Saudi Ara­bia for China Na­tional Build­ing Ma­te­rial Corp and 420KV switchgears to China Ma­chin­ery En­gi­neer­ing Co for its project in An­gola’s Soyo power plant.

EPC projects are a com­mon form of con­tract­ing ar­range­ment in the con­struc­tion in­dus­try.

“We have de­ployed more than 30,000 em­ploy­ees across the world to help global co­op­er­a­tion which is an ad­vanced plat­form for us to in­te­grate the busi­ness with many sec­tors in dif­fer­ent coun­tries, not only in the fields of power or re­gional

ABB Group

con­nec­tiv­ity, weare also pro­fi­cient in pro­vid­ing mar­itime equip­ments and so­lu­tions to our cus­tomers,” said Spiesshofer.

The Swiss firm em­ploys 18,000 peo­ple in China and op­er­ates 40 lo­cal firms across a sales and ser­vice net­work in 147 cities.

Clau­dio Facchin, pres­i­dent of ABB’s power grids divi­sion world­wide, said ABBhas part­nered with­Chi­nese com­pa­nies to com­plete more than 1,000 projects over the past decade, which has sig­nif­i­cantly sup­ported both in­dus­trial and in­fra­struc­ture de­vel­op­ment.

“The power sec­tor is un­der­go­ing un­prece­dented change both from a de­mand and sup­ply per­spec­tive, with the in­flux of re­new­ables be­ing a ma­jor game changer. This not only re­quires the grid to be­come more flex­i­ble and re­li­able but also to be more in­tel­li­gent and au­to­mated,” said Facchin, who was pre­vi­ously sta­tioned in Bei­jing and re­spon­si­ble for the com­pany’s op­er­a­tions in China and North Asia.

He said the com­pany is pro­vid­ing key tech­nolo­gies for in­cor­po­rat­ing clean en­ergy into con­ven­tional grids. For in­stance, its high-volt­age di­rect-cur­rent tech­nol­ogy can en­sure ef­fi­cient and re­li­able long-dis­tance elec­tric­ity trans­fer. ABB worked on the Xiangji­aba-Shang­hai elec­tric­ity trans­mis­sion link which trans­fers enough clean en­ergy across more than 2,000 kilo­me­ters to serve the needs of nearly 24 mil­lion users us­ing HVDC tech­nol­ogy.

ABB has more than 110 HVDC projects world­wide. It has been in­volved in 26 HVDC projects in China so far.

Ul­rich Spiesshofer, CEO of

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