Sun. Sep 24th, 2023
    ABB to Invest $280m in New Robotics Factory in Sweden

    ABB, the Swiss engineering group, has announced plans to invest $280m in building a new robotics factory in Västerås, Sweden. The factory, named the Robotics European Campus, will replace ABB’s existing facilities in the country and serve as the hub for ABB Robotics in Europe. The company aims to strengthen its European business and support its “local for local” production strategy. The new campus is expected to open in late 2026.

    The investment is in line with ABB’s expansion plans following recent investments in China and the US. By building a new facility in Sweden, ABB intends to better serve its European customers with locally manufactured products. The company also aims to increase its production capacity by 50% and capitalize on the projected 7% compound annual growth rate (CAGR) of the European robotics market through 2027.

    According to Sami Atiya, President of ABB’s robotics & discrete automation business area, the new campus will play a significant role in supporting European customers as they ramp up investments in robotics and AI. The reshoring of industry, the shift towards more sustainable supply chains, and long-term labor shortages are driving the need for advanced automation technologies.

    The construction of the Robotics European Campus is scheduled to start in 2024. It will replace the nine separate buildings that currently house ABB’s robotics operations in Sweden. This investment aligns with the global trend of companies seeking self-sufficiency and domestic production, particularly in light of supply chain disruptions caused by the COVID-19 pandemic and geopolitical tensions.

    The move by ABB also reflects the support provided by governments and regulatory bodies. The European Union has relaxed state aid funding approval to protect economies and encourage investments, while the United States has implemented acts such as the Inflation Reduction Act and the Chips and Science Act to stimulate the tech sector and promote self-sufficiency.

    Source: This article is based on information from various sources, including GlobalData’s Thematic Intelligence: Robotics report and the statement from ABB CEO Björn Rosengren.

    – Robotics: The branch of technology that deals with the design, construction, operation, and application of robots.
    – Robotics European Campus: A new robotics factory being built by ABB in Västerås, Sweden to serve as the hub for ABB Robotics in Europe.
    – “Local for local” production strategy: ABB’s strategy of manufacturing products locally to serve the specific needs of the local market.
    – Compound Annual Growth Rate (CAGR): The rate at which an investment grows or declines on average each year over a specified period.
    – Reshoring: The practice of bringing the production of goods or services back to the country where they are to be sold, rather than relying on imports.
    – Geopolitical tensions: Conflicts or tensions between nations that are driven by political, economic, or strategic interests.