power and productivity for a better world abb group proﬁle · power and productivity for a better...

Power and productivity for a better worldABB Group profile

ABB_Corporate.qxd 11.10.2007 12:22 Uhr Seite UG1

ABB is a leader in power andautomation technologies that enableutility and industry customers to improveperformance while lowering environmentalimpact. The ABB Group of companiesoperates in around100 countries andemploys more than110,000 people.


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About ABBAs one of the world’s leadingengineering companies, we help ourutility and industry customers to useelectrical power effectively and toincrease industrial productivityin a sustainable way.

ABB’s technology competence, broad applicationknow-how and global presence offer customerseasy access to leading electrical engineeringand industry automation solutions and systems.Innovation and quality are key characteristicsof our service and product offering.

ABB is headquartered in Zurich, Switzerland.ABB Ltd shares are traded on the stock exchangesin Zurich, Stockholm and New York.

The ABB Group was formed in 1988, when theSwedish Asea and the Swiss BBC Brown Boverimerged under the name ABB. Asea’s historydates back to 1883. BBC Brown Boveri wasfounded in 1891.

Combining smart softwarewith wireless technology,Operate IT Pocket Portal putsvital information and control inthe palm of a plant supervisor’shand, saving time andincreasing productivity.

ABB is a world leader in powertransmission and distribution,providing products, systemsand services which increase gridreliability and energy efficiency.

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Our power andautomation technologieshelp industries improveproductivity, reliabilityand save energy.

These industries include:■ electric, gas and water utilities■ automotive■ chemical and pharmaceutical■ metals■ minerals and mining■ power generation■ cement■ commercial and industrial buildings■ food and beverages■ pulp and paper■ oil and gas■ refining■ railways■ petrochemicals■ marine and turbocharging■ telecommunications and data communication

We also deliver our products and expertisethrough channel partners such as original equipmentmanufacturers, engineering, procurement andconstruction firms, wholesalers and distributors.

We have five divisions:Power Products, Power Systems,Automation Products, ProcessAutomation and Robotics. Our products, systems, solutions and services are used in manyindustries that affect our daily lives...


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Letter from the Presidentand Chief Executive Officer

ABB’s business has a very clear focus: our products,systems, solutions and services are designed tostrengthen power grid reliability and improve industrialproductivity.

Our aim is to drive profitable growth – both for ourselvesand our customers. We help customers to improve theircompetitiveness and productivity, as well as save energyand lower environmental impact.

By becoming more efficient, we can increase customers’competitiveness. We are improving business executionand taking a broad approach to value creation. As acompany, we can look forward to sustainable andprofitable growth.

Every day, ABB produces and ships more than a millionproducts, ranging from tiny low-voltage switches anddrives to huge transformers weighing over 1,000 tons.

We provide our utility and industry customers with high-efficiency, energy-saving products and systems whichallow them to get the most from their grids and factories.Together, we contribute to economic growth,environmental stewardship and societal development.

Our history of innovation goes back to the late 19thcentury, and we remain firmly committed to this pioneeringapproach to industrial technology. We recognize thatinnovation, supported by strong investment in researchand development, is key to maintaining our cutting-edgetechnologies and strengthening our market leadershippositions today, and in the future.

As a global company present in about 100 countries, ourmanufacturing and research activities are carried out in allthe regions of the world.

Wherever our facilities are based, customers know theABB brand stands for top quality power and automationtechnologies, a pioneering spirit that ensures we fulfill theirbusiness needs, and a company that is at home whereverit operates.

We are committed to helping our customers to use powereffectively and increase productivity in order to create abetter world. These are important challenges andopportunities for ABB.

We have a mission to pursue, and are committed toensuring our plans become reality: Power and productivity for a better world.

Fred KindlePresident and CEO, ABB Ltd

ABB engineers and scientistswork hard to developbreakthrough technologiesthat help improve our worldand the way industriesand utilities operate.

Every day, ABB manufacturesand ships more than a millionproducts, from tiny low-voltageswitches to huge transformersweighing more than 1,000 tons.

Fred Kindle President and CEO, ABB Ltd


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ABB’s products, systems,services and engineering skills helpmonitor and protect the flow of electricalpower, improve its quality and reliability,and ensure customers can effectivelyuse the electricity they need.

ABB products, systemsand services ensure reliable,high-quality powerfor customers...

Experience, innovation and dedicationModern power systems rely on sophisticatedpower equipment, control and monitoring systemsall working in harmony. ABB’s dedicated scientists,innovative engineers and experienced business leadersensure our power generation, transmission, distributionand automated systems operate flawlessly, deliveringreliable, quality power.

Breakthrough technologyABB’s reputation is built on a century of pioneeringinvention, innovation and quality. Recent breakthroughsinclude our HVDC Light technology, for transmitting high-voltage power underground and underwater andimproving the stability of power grids, and the Industrial ITExtended Automation System 800xA, which can upgradeand expand a power plant control system to meet presentand future needs, without sacrificing parts of the systemthat are still useable.

Transmission and distribution leaderUtility and industrial customers around the world rely onproven power and automation technologies like these –researched, developed and made by ABB. As a result,we are the recognized global leader in power transmissionand distribution, with a world market share of about20 percent.

Blackout challengesBlackouts in recent years decisively demonstratethat 21st century power grids are vulnerable. In manycountries, deregulation of power markets has all toooften hampered necessary investment in high-endpower technology. But modern T&D equipmentlets operators upgrade existing power systemsin an economical way, improving reliability, extendingequipment lifetimes and ensuring even older gridsoperate dependably and efficiently.

Faster and fasterABB offers superior power products, systems andservices, and most of all, speed. We are committedto short delivery times, and determined to be fastestin everything we do. Power consumers should not have to wait one moment longer for a reliable power supply.


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1 ABB power products likethe transformers picturedhere are helping to transmitelectricity efficiently andcreate power connectionsbetween countries.

2 ABB high-voltage gasinsulated switchgear (GIS)combines compact sizewith high reliability.

3 ABB’s high-voltage directcurrent (HVDC) technologyensures efficient, long-distanceenergy transmission.

4 Network managementsolutions help our customersoptimize energy flow alongthe entire power grid.

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Essential ABB products, systems,software and services make assetsmore productive and reduce energyconsumption, helping our customersoptimize their industrial, commercialand utility operations.

Solutions made simpleABB supplies a vast range of advanced power andautomation technologies to enhance industrialproductivity, including electrical motors and machines,power transformers and switchgear, drives and powerelectronics, SCADA systems, low-voltage products,instrumentation, control systems and robotics. Our globalinstalled base of automation solutions alone is valued atmore than $100 billion. Our pioneering static varcompensator (SVC) and SVC Light installations enhanceproductivity by regulating voltage fluctuations.

Quality and reliabilityABB customers operate diverse and sophisticatedbusinesses – from discrete manufacturers likeautomakers, to process producers making pulp andpaper, and utilities generating or delivering electricalpower. Whatever they do, our customers need the mostreliable power and automation systems and solutionsavailable. Quality is their competitive edge, and our goalis to deliver the products, services and systems thathelp them keep that edge.

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...increase productivityin our customers’industrial plants...

1,2 ABB motors, drives,instruments and controlsystems team up to helpcomplex plants runmore efficiently.

3,4 ABB robots assembleand finish automobiles,appliances and mobilephones with speedand precision.

5 ABB low-voltage productsimprove building and plantefficiency with reliablepower distribution,equipment protectionand control.

Lower investment and lifecycle costsIn addition to improving quality and productivity,ABB products and solutions also help customersto optimize the return on their power and automationinvestment. Our state-of-the-art control systems supporteasy upgrades and expansions while allowing operatorsto retain parts that can still be used. Our power systemsincrease power quality, reliability and boost productionoutput. And our advanced lifecycle services helpcustomers squeeze extra value from installed assetsby keeping them in top working order.

Looking aheadOur research and development anticipates thechanging demands of industrial productivity, and oursolutions-based approach is designed to link installedproducts and systems together with the informationneeded to operate and maintain them. Remote accessto information about the performance of installed devices,combined with wireless networking and opencommunication standards, offer ever-improvingasset visibility to enterprise managers.

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At ABB, we engineer performance and energysavings into every product. Whether we’rehelping a factory run more productively orequipping a power plant with state-of-the-artcontrol systems and electrical equipment,our goal is to increase efficiency and energysavings and at the same time reduce costs.

...and offer substantialenergy savings that benefiteveryone.

Efficient consumptionWithout reliable power, our developed anddeveloping world would grind to a halt. But there isanother dimension to the question of reliable energysupply, and that is energy consumption: are we using the energy we have as efficiently as possible?

Several million AC drivesThere is a great deal ABB can do to help customersavoid wasting energy and reduce energy consumption.For example, we have delivered several million energy-efficient AC drives in the past dozen years, mostof them still in active service and controlling thespeed and torque of AC or DC motors in pumps, fans, compressors, conveyors, mixers etc.

Energy savings, emissions reductionsABB’s total installed base of AC drives alone isestimated to save130 million megawatt hours of energyper year (the equivalent of 16 nuclear power plants)while increasing productivity and reducing CO2 emissionsby more than100 million tons annually.

DTC saves energyABB’s direct torque control (DTC) AC drives ensureelectric motors use no more electricity than they require,saving energy in a huge range of industrial applications,as well as water utilities, in buildings and on board ships.

Efficient power transmissionIn China, ABB has built three efficient, low-loss,high-voltage direct current (HVDC) power lines, eachabout 1,000 kilometers long and each one savingenough energy to power 156,000 households.

ABB optimizing technologiesThe rapid growth of basic infrastructure services in regionssuch as the Middle East means power and water utilitiesare looking for ways to reduce production costs. ABBtechnologies have a vital role to play in optimizing existingfacilities and helping to build efficient new plants.


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1 ABB Azipod modularpropulsion systems helpcruise and cargo shipsreduce fuels costs up to15 percent while improvingmaneuverability and efficiency.

2 ABB’s high-voltage directcurrent (HVDC) transmissiontechnology features lowpower losses comparedto AC systems of thesame capacity.

3 Electric motors consumeabout 65 percent of theelectricity used by industry,and several million ABBvariable speed drives are inuse to keep them energyefficient.

4 Innovative R&D helps ABBcreate pioneering productsthat add economic andenvironmental value forour customers.

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Technology

ABB technologyensures power reliability,industrial productivityand energy savings.

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Main picture (below):ABB is the world leader inturbocharging technology fordiesel and gas engines in the500 kW plus power range.

1 ABB has developed uniqueprocess visualization andmanagement systems thatoperate via large-screen displayterminals and mouse-controlledinteractive communication.

2 ABB’s Shimada TechnicalCenter in Japan is wherepaint application technologyis created for global markets.

3 At each stage of theirdevelopment ABB productsundergo rigorous tests (here,an ACS converter).

4 ABB has created advancedrolling mill technology tomeasure flatness, tension,position and dimensionaccurately, reliably andrepeatedly under the mostdemanding conditions.


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At the heart of technology leadershipResearch and Development is the foundation of ABB’stechnology leadership. At its heart are ABB researchengineers and scientists, as well as customers, suppliersand leading technology institutions around the world. Ourproduct and process innovations enhance power reliabilityand industrial productivity, improve competitivenessand reduce environmental impact.

Groundwork of the futureABB’s researchers are laying the groundworkof future product development in the areas of powerdevice technology, power transmission and distributionapplications, power electronics, mechatronics and roboticsapplications, control systems and optimization, automationnetworks and devices, software architecture and processes,advanced materials and manufacturing technologies.

The ABB research presenceThrough our R&D centers around the world we maintainclose ties to our customers and technology partners. Inrecent years, we have increased our research presence ingrowing markets like India and China and strengthened ourpresence in the U.S. We work closely with more than 50of the world’s leading universities and research institutes,including renowned institutions like Carnegie MellonUniversity, Stanford University, the Massachusetts Instituteof Technology (MIT), and Cambridge University.

As strong as our peopleOur customers want innovations that give them operationalflexibility, and also assurance that ABB products andsystems will operate reliably for years without unexpectedrefits or overhauls. Given ABB’s massive installed base ofpower and automation technologies, reconciling innovationand continuity is a high priority for our more than 6,000research scientists and engineers.

Economic and environmental valueSince we deliver more than one million productseach day, we are ideally positioned to pioneer innovationsthat add economic and environmental value. Energyefficient ABB drives and motors, for example, reduceenergy costs, increase productivity and prevent millionsof tons of CO2 emissions every year.

Our prioritiesAt ABB, our R&D priorities – based on sustained customerpartnerships – never change: creating environmentallysound products, systems and services that increaseindustrial productivity and ensure reliable energy.

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5 ABB continues to developa vast range of roboticproducts, including software,controllers, applicationequipment, industry-specificsolutions and servicepackages.

6 ABB has developedself-extinguishing HECgenerator circuit breakers thatcan shut down fault currentsthat are high enough to bendsteel generator shafts.

7 Research and production ofABB’s advanced technologyis often conducted in specialclean rooms to ensure ourproducts work perfectlyin the real world.



Sustainability

Contributing to economicgrowth, environmentalstewardship and societaldevelopment.

Main picture (right)ABB helps children fromunderprivileged backgrounds(as seen here in India), in manycountries, from Brazil toSouth Africa and Poland,with devoted programs andextensive volunteer work.

1 Ships in Gothenburg,Sweden, use ABB technologyto plug into power onshoreand cut their emissionswhile in port.

2 ABB has launched a numberof initiatives supporting theprofessional developmentof women in the UnitedArab Emirates.

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Corporate responsibilityA core element of ABB’s approach to business is theneed to act with responsibility to stakeholders, rangingfrom shareholders and customers to employees and thecommunities in which we operate. Corporateresponsibility, underpinned by key values and beliefs, isongoing work, requiring careful monitoring, and opennessto help us determine risks and opportunities.

A key element of our businessSustainability for ABB means seeking a balance betweeneconomic development, environmental stewardship andsocial progress. Sustainability is built into different aspectsof our business, including the manufacturing of energy-saving products, systems and solutions, the sharingof technology throughout our group, particularly withdeveloping countries, and joining multilateral effortsto raise living standards around the world.

Our contributionOne of our main contributions to sustainability lies in thestrong environmental performance of our products overtheir complete life cycles. Using life cycle assessments,we supply products and systems that require lessmaterial, have greater efficiency and consume less energy,which means less harmful emissions – particularly duringlong operating lifetimes.

The triple bottom line approachABB follows the guidelines of the Global ReportingInitiative (GRI) – an international, multi-stakeholderundertaking supported by the United Nations. The GRIguidelines are based on a measurable “triple bottom line”reporting approach – covering environmental, economicand social performance. We report accordingly in ourannual Sustainability review.

Common effortsABB is involved in a wide range of common efforts,partnering other companies and non-governmentalorganizations in projects around the world. These includejoint sustainable development projects in rural parts ofAfrica, where ABB provides electrification expertise, andan initiative among leading international companies toembed the protection and promotion of human rights inbusiness activities.

Visit us on the web: www.abb.com/sustainability

3 ABB’s Access to Electricityprogram is strengtheningeconomic, environmental and social development in rural Tanzania.

4 People in Argentina learnnew farming methods onABB land, which helpsthem to improve theirliving standards.

5 Wind parks around theworld use ABB productslike generators, motors andtransformers to create power,as well as technology to linkthem to local power grids.

6 In China, ABB helpsfinancially disadvantagedstudents to complete theirengineering studies.

7 ABB has delivered severalmillion energy-saving ACdrives in the past decade,used in hundreds ofapplications to cut costsand reduce emissions.

8 A health and educationprogram sponsored by ABBin Brazil gives poor childrenaccess to schooling, food,medical checkups and achance for a better future.

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ABB controls and energizespower plants with automationsystems and all instrumentationand electrical equipment. ABBholds the world record forcurrent switching with SF6generator circuit breakers.

ABB’s unique HVDC Light systemis designed for undergroundor underwater power transmission.Its environmental benefitsinclude no overhead power lines and a neutral electromagnetic field.

High-voltage direct current (HVDC)transmission is an efficient meansfor long-distance bulk powertransmission and for connectingasynchronous power grids.ABB pioneered this technology.

Transmission substations areused to raise voltages for longdistance power transmission.ABB has built more transmissionand distribution substationsthan any other company –well over 5,000.

Flexible AC transmissionsystems (FACTS) enhance thecapacity of existing networksand increase power quality.ABB has more than 700 FACTSinstallations, or about 50 percentof the world market.

Our technologies at work

A unique portfolio of ABB productsand systems ensure safe and efficientpower transmission from where itis generated to where it is used.



Medium-voltage breakers andswitchgear turn electricity on andoff to protect installations andelectrical equipment. High-speedtransfer switches protect critical power flow in hospitals and industries.

High-voltage products switchpower on and off and interruptcurrent. Gas insulated switchgear isvery compact and particularlyuseful in indoor substationswhen space is scarce.

Our network managementsolutions keep power flowingaround the world. The latestinnovation is the satellite-basedWide Area Monitoring System.ABB’s software also facilitatespower trading.

ABB is a major supplier to railwaynetworks and trains. High quality,medium-voltage distributionsystems and special products liketraction transformers ensure reliablepower supply for rail transport.

Transformers raise and lowervoltage – an essential part ofthe transmission and distributionprocess. ABB produces about2,000 power transformers and500,000 distribution transformers a year.

Our offering Our power technology offerings serve industrial andcommercial customers, as well as electric, gas and waterutilities, with a broad range of products, services andsolutions for power transmission and distribution.The portfolio includes transformers, switchgear, breakers,capacitors and cables, as well as high- and medium-voltageapplications, many of which are also sold through externalchannel partners like distributors, system integrators,contractors and original equipment manufacturers.



ABB power solutions deliverelectricity from the grid to systemsthroughout the mill, and manageon-site generation of primary orbackup power.

ABB motors and drives providecorrect motion and torque forrotating machinery whileimproving energy efficiency.Our products help to reduceharmful emissions by millionsof tons annually.

Our analyzers and quality controlsystems monitor and adjustproduct characteristics to meetcustomer specifications, performingonline measurements at up tohundreds of meters per minute.

Our instruments, control systemsand software ensure precisionblending of process chemicals andraw materials. They can detectimpurities as small as one partin 50 million.

ABB force measurementsystems manage machinetension and balancefor smooth operationat varying line speeds.Our first precision forcemeasurement patentsdate back 50 years.

Our technologies at work

A wide range of ABB productsand solutions are used by utilities andindustry customers to raise productivityat plants such as this pulp and paper site.



ABB logistics services andsoftware help to minimizeinventory and track themovement of products andservices across the value chain –from the supplier throughto end use.

ABB robots lift heavy loads withprecision for material handling,finishing and assemblyapplications. We have morethan 150,000 industrial robotsinstalled worldwide.

ABB low-voltage devicesand energy managementsystems ensure a comfortable,energy-efficient buildingenvironment. We ship more thanone million products daily tofacility contractors and installers.

Our asset management softwareconstantly monitors plant devicesfor real-time efficiency and is inhigh demand across anautomation technologies installed base worth more than$100 billion globally.

Our offering Our automation technology offerings serve the automotive,building, chemicals, consumer, electronics, life sciences,manufacturing, marine, metals, minerals, paper, petroleum,transportation, turbocharging and utility industries. Keytechnologies include control, drives, enterprise software,instrumentation, low-voltage products, motors, robots andturbochargers. These offerings are supported by fieldmaintenance and asset management services, and aresold both directly and through channel partners.


ABB LtdCorporate CommunicationsP.O. Box 8131CH-8050 ZurichSwitzerlandTel: +41 (0)43 317 7111Fax: +41 (0)43 317 7958

www.abb.com

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