ABB - ABB to invest $170M in U.S. electrification automation projects

2023-04-04 09:15:53 ET

ABB ( NYSE: ABB ) said Tuesday it is accelerating its growth strategy in the U.S., with plans to spend ~$170M across seven states in its electrification and automation businesses to meet rising demand.

The company said it will invest in projects in Wisconsin, Tennessee, Georgia, New Mexico, Michigan, Pennsylvania and South Carolina.

The biggest commitment is a nearly $100M investment in a Drives and Services manufacturing facility in Wisconsin that will increase U.S. production capacity of industrial electric drives and provide additional customer services; the plant is expected to be completed in late 2024.

ABB ( ABB ) said the Inflation Reduction Act supports its investment in creating a more secure supply chain and strengthening local manufacturing.

The company said the U.S. is its largest market, comprising 24% of annual revenue.

ABB ( ABB ) "offers good long-term exposure to automation and electrification, but there is work to do to optimize the portfolio, with an eye toward maximizing the revenue, margin, and FCF opportunities," Stephen Simpson writes in an analysis posted recently on Seeking Alpha .

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