ABB Invests $2.8 Billion to Expand Manufacturing Footprint and Establish the ABB European Robotics Center in Sweden
In a significant move, ABB announced on September 13th its plan to invest $2.8 billion to expand its manufacturing presence in Europe by establishing the cutting-edge ABB European Robotics Center in Västerås, Sweden. This center will serve as the hub for ABB's robotic business in Europe, offering AI-powered collaborative and industrial robots to customers and supporting flexible automation through digital solutions. The project is part of ABB's "localize for growth" strategy, with the new facility scheduled to open by the end of 2026, replacing existing robot facilities.
ABB's CEO, Björn Rosengren, highlighted the investment's impetus, stating, "The investment in the new center is driven by customer demand and anticipated market growth." He also emphasized the importance of the facility in strengthening ABB's ability to provide locally manufactured products to European customers. Currently, approximately 95% of ABB's robots sold in the region are locally produced. This underscores the company's commitment to its "localization service" strategy and its dedication to all robot customers across Europe.
Global Leadership and Capacity Expansion
This investment will enhance ABB's global leadership in robotics and automation. The facility is expected to increase production capacity by 50% and boost the company's supply capabilities to the European market. A compound annual growth rate of 7% is projected for the European market by 2027. Combined with the upgraded Swedish plant, ABB has invested $450 million in its three robot production bases since 2018. ABB's large Shanghai factory serves Asian customers, while the Auburn Hills plant supports American customers.
Addressing the Need for Automation
Sami Atiya, ABB Robotics and Discrete Automation President, noted that it is an opportune time to invest in robotics and automation. With manufacturing reshoring, a shift toward sustainable supply chains, and long-term labor shortages, European customers are accelerating investments in robotics and artificial intelligence. The new center is a crucial part of ABB's global growth and a key support for European customers. The robotics center will provide customers with quicker service and unlock the immense potential of robotic automation across various emerging industries, including automotive, electronics, logistics, healthcare, e-commerce, and pharmaceuticals.
A Collaborative Ecosystem and Sustainability Focus
Once the ABB European Robotics Center is completed, it will foster closer collaboration with customers and partners in a safer and more comprehensive environment for developing robot and automation solutions. It will also allow on-site testing of solutions and provide opportunities for experiencing the latest automation technologies for employees, visitors, and students.
Furthermore, the construction of this center aligns with ABB's 2030 sustainability plan, aiming to achieve carbon neutrality by reducing greenhouse gas emissions and enhancing resource protection. Building materials, construction processes, and the use of solar panels on the roof will be considered as part of the sustainability initiatives.
Comment
ABB's significant investment in the ABB European Robotics Center in Sweden reflects the company's dedication to delivering localized manufacturing solutions to address the rising needs of the European market. This strategic move not only reinforces ABB's global leadership in the robotics and automation sector but also aids customers in navigating the evolving manufacturing landscape through innovation, collaboration, and sustainability. The state-of-the-art facilities and emphasis on automation technologies at the center are poised to play a pivotal role in advancing the European manufacturing industry and nurturing a dynamic ecosystem of automation and robotics in the region.