ABB's new $150 million plant in China will produce industrial robots

Create Date: 2024-8-30 12:03:23|Source: ABB

ABB will manufacture industrial robots at its new plant in China. The Switzerland engineering group said Saturday that it plans to build industrial robots in Shanghai for $150 million to defend its position as China's largest industrial robot manufacturer.

Located near ABB's China Industrial Robotics Park, the plant is expected to start production by the end of 2020 and will produce industrial robots in China for export to the rest of Asia. China is ABB's second-largest market after United States.

In a statement announcing the project, ABB CEO Ulrich Spiesshofer said: "Shanghai has become an important hub for ABB and the world's advanced technology leadership."

As the business expands, ABB is counting on industrial robot sales in China, despite concerns about trade tensions between China and the United States. Some worry that the tension could dampen demand for electronics, auto parts, and other products that require automated manufacturing and industrial robots.

China is expanding its industrial robot workforce because of rising wages for human workers there and as China tries to compete with lower-cost countries through greater automation. ABB said that in 2017, one-third of the world's industrial robots were sold to China, which bought nearly 138,000 units.

ABB's new 75,000-square-foot factory will use software designed to allow people and industrial robots to work safely nearby, the company said, and it is designed to work side-by-side with people and will also be deployed in many small parts that need to be manufactured for an ABB industrial robot assembly task.

Rival Kuka is also expanding in China, including building an industrial robot park in Shunde, near Hong Kong. KUKA was acquired by Midea two years ago.

A spokesperson for ABB said the company will manufacture industrial robots for multiple industries at the Shanghai plant. ABB's industrial robots are used in the manufacture of automobiles and electronic devices.

The company did not disclose the number of new employees at the plant, but said it would increase employment for industrial robot workers. ABB currently has more than 2,000 employees in China.

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