ABB to invest US$110 million in US manufacturing
MWN-AI** Summary
ABB has announced a substantial investment of $110 million in U.S. manufacturing as part of its strategy to enhance electrification solutions and cater to increasing demand across key sectors, including data centers and power grids. This investment will span four locations, with plans to create around 200 jobs, underscoring the company’s commitment to supporting future growth in its largest global market.
The investment breakdown includes $30 million in Richmond, Virginia, aimed at doubling the facility's footprint by adding a new test center, warehouse, and assembly lines. This expansion is expected to generate approximately 100 new roles, supporting critical operations in sectors like data centers and manufacturing. Arecibo, Puerto Rico will see a similar investment of over $30 million, which will allow for the addition of three production lines, creating 90 skilled jobs by 2026.
In Mississippi, a new production line for the innovative Emax 3 circuit breaker technology will be established at a $15 million investment. This advanced technology bolsters energy security for high-demand facilities, such as data centers. Additionally, Pinetops, North Carolina, will receive $35 million to ramp up the manufacturing capacity for low and medium-voltage grid components, crucial for utilities and industrial facilities.
The backdrop to ABB's investment is a notable rise in U.S. electricity prices and an anticipated increase in electricity demand driven by the growth of data centers, with projections suggesting demand growth exceeding 2% annually for the next couple of years. ABB's strategic investments position the company to meet evolving demands while reinforcing its local-for-local production strategy. This approach not only fosters job creation but also enhances the resilience and efficiency of critical infrastructure across North America.
MWN-AI** Analysis
ABB's decision to invest an additional $110 million in its U.S. manufacturing landscape is a strategic move that reflects both current market conditions and anticipated future demands in key industries. This inflow is particularly relevant given the recent surge in U.S. electricity prices and the projected growth in electricity demand driven primarily by data centers and grid modernization efforts.
Investors should take note of several key aspects of ABB's expansion. First, the focus on advanced technologies like the Emax 3 circuit breaker is noteworthy. As more industries, particularly data centers, increase their energy consumption, the demand for energy-efficient and dependable protection systems grows. By producing these technologies domestically, ABB positions itself to better meet the needs of its North American clientele, potentially generating a strong return on investment as energy costs rise.
Furthermore, the jobs created through these investments – almost 200 jobs across multiple states – may enhance community support for ABB, fostering a favorable business environment. Regional developments in Richmond, Pinetops, Arecibo, and Senatobia will not only create employment opportunities but will also drive localized economic growth.
Moreover, ABB’s robust revenue figures in the U.S.—approximately $9 billion for 2024—indicate a healthy market share to capitalize on. The company’s local-for-local manufacturing strategy, where a substantial majority of U.S. revenues are derived from domestically produced goods, also bodes well for future profitability.
For investors considering ABB, the company's investment in U.S. manufacturing is a strong endorsement of its growth strategy. With the increasing emphasis on sustainability and efficiency in power consumption, coupled with ABB's significant historical presence and expertise in electrification, investing in ABB stocks or related financial instruments could be a prudent decision that aligns with the evolving energy landscape.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Investment in four US manufacturing sites to meet future demand in key industries, including data centers and the grid
- Advanced new Emax 3 circuit breaker technology will be made in the US
- $30M investment in Richmond, Virginia, and $30M investment in Arecibo, Puerto Rico, will create nearly 200 new jobs
- Additional investments include $35M in Pinetops, North Carolina, and $15M in Senatobia, Mississippi
ABB announced today that it will invest a further $110 million in the United States in 2025 to expand the R&D and manufacturing of its advanced electrification solutions as customers focus on improving energy efficiency and uptime while reducing their energy costs. The IEA estimates US wholesale electricity prices rose by 30-40% in the first half of 2025, compared with 2024.
Creating nearly 200 new jobs, the investment will support expected future growth in key industries, including data centers and the power grid. Rapid expansion of data centers in the US is expected to keep annual electricity demand growth above 2% in both 2025 and 2026, more than double the average growth rate over the past decade ( IEA ).
A new production line will be created in Mississippi for ABB’s innovative Emax 3 circuit breakers, an advanced technology used to protect critical infrastructure, such as data centers.
“This $110 million investment in the US is part of our long-term strategy to support future growth in our biggest global market,” said Morten Wierod, ABB’s Chief Executive Officer. “Demand is being driven by key trends, from the surging power needs of AI in data centers, to grid modernization and customers improving energy efficiency and uptime to reduce their costs. Our investments will ensure we can meet growing demand from customers across North America in line with our local-for-local strategy.”
Manufacturing new technology
ABB will invest $15 million to create a new production line for Emax 3 in its Senatobia, Mississippi, site. The cutting-edge Emax 3 air circuit breaker improves the energy security and resilience of power systems in large facilities with high power demands, including data centers, advanced manufacturing sites, and airports. The new line is expected to open in 2026.
A $30 million project will double the footprint of ABB’s Richmond, Virginia, facility, adding a new test center, warehouse and new assembly lines. The power quality and protection products made in Richmond are used by data centers, manufacturing plants and utilities to protect critical systems in essential operations and services, like servers, MRI machines and production lines from electrical failures. The new facility, opening in Q4 2025, will create around 100 new production and engineering roles.
In Arecibo, Puerto Rico, an investment of more than $30 million will increase the size of the facility to accommodate three new production lines. Made for industrial and commercial operations in the US, technologies produced in Arecibo include smart circuit breakers and switching devices, essential power components that help distribute electricity, protect equipment and monitor energy usage. The expansion will create 90 new skilled jobs by the end of 2026.
A $35 million investment will increase the capacity of ABB’s manufacturing facility in Pinetops, North Carolina. This will support expected demand for advanced low and medium voltage grid components from the utilities, and for data centers and industrial facilities. The expansion will support customers upgrading their energy infrastructure with advanced sensors and new switching and grid protection devices. The upgraded facility will open in 2026.
From 2022-2024, ABB invested around $500 million in its US business, including a new $100 million manufacturing facility and innovation laboratory in New Berlin , Wisconsin and a new $40 million factory in Albuquerque , New Mexico. In March 2025 , ABB announced a $120 million investment in its facilities in Selmer, Tennessee ($80 million) and Senatobia, Mississippi ($40 million). A further $20 million investment in Selmer will increase production capacity. ABB opened a new $4 million Regional Distribution Center in Dallas, Texas, in August 2025 and invested $4 million in several service facilities to enhance customer support this year.
The revenue of ABB in the US was close to $9 billion in 2024, accounting for ~27% of the ABB Group total. With approximately 17,000 people across the US, ABB has nearly 40 manufacturing, distribution, and operational facilities across 20 states, including nine major R&D centers. ABB has a presence in all 50 states. Today, approximately 75-80% of the revenues ABB generates in the US are from products manufactured in the US.
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
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Elizabeth LubbenABB Electrificationelizabeth.lubben@us.abb.com
FAQ**
How does ABB Ltd. ABLZF plan to capitalize on the anticipated growth in electricity demand driven by data centers and grid modernization in the US market through its recent investments in North Carolina and other locations?
What are the anticipated impacts on job creation and local economies in regions like Cary, North Carolina, as a result of ABB Ltd. ABLZF's $110 million investment in R&D and manufacturing infrastructure aimed at energy efficiency?
In what ways will the production of the Emax 3 circuit breaker technology by ABB Ltd. ABLZF enhance power security and resilience for critical infrastructure, such as data centers, especially given the projected increase in electricity demand?
How does ABB Ltd. ABLZF plan to utilize its manufacturing advancements in Pinetops, North Carolina, to support utilities and industrial facilities in upgrading their energy infrastructure with smart technology and what are the expected timelines for these developments?
**MWN-AI FAQ is based on asking OpenAI questions about ABB Ltd. (OTC: ABLZF).
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