ABB Group[5] is a Swedish-Swiss[6][7][8] technology company,[9][10][11] that operates in the fields of electrification and automation. The company was formed in 1988 from the merger of two electrical engineering companies, ASEA of Sweden and Brown, Boveri & Cie (BBC) of Switzerland.
Incorporated in Switzerland as ABB Ltd, and headquartered in Zurich, it is dual-listed on the Nasdaq Nordic exchange in Stockholm, Sweden, and the SIX Swiss Exchange in Zurich.[12], in addition to OTC Markets Group's pink sheets in the United States. For 30 years, it has been a part of the Fortune Global 500.[13]
Employees of ABB and its predecessor companies developed several technologies for generating, transmitting, and distributing electricity, as well as for enabling industrial automation. One is the miniature circuit breaker, invented by Hugo Stotz, which protects against fires and is found in almost every home.[14][15] Predecessor ASEA was the first company to introduce a microprocessor into an industrial robot and it helped to develop the electric propulsion system "Azipod", which improved manoeuvrability by locating the propulsion system outside the hull.
ABB is made up of around 20 divisions structured into four business areas: Electrification, Motion, Process Automation and Robotics & Discrete Automation.[16] Previously, it had a large power grids business, which was sold to Hitachi in 2020,[17] as well as a turbocharging business, that was spun off in 2022.[18] Over the years, ABB made different acquisitions, with major ones in the 21st century including Baldor Electric, Thomas & Betts, and the GE Industrial Solutions division of General Electric.[19]
The company's activities have been the subject of controversy on multiple occasions. US-based Combustion Engineering, acquired by ABB in 1990, exposed the company to asbestos-related litigation, which led to ABB’s first-ever loss in 2001. A final claims settlement was reached in 2006. ABB has also been subject to three US Foreign Corrupt Practices Act bribery settlements in 2004, 2010, and 2022. Additionally, in 2001, an ABB entity pleaded guilty to bid rigging.[11]
During the 2010s, ABB largely focused its growth strategy on the robotics and industrial automation sectors. Before the sale of its Power Grids division to Hitachi in 2020, ABB was Switzerland's largest industrial employer.[20]
History
Predecessor companies and formation
Allmänna Svenska Elektriska Aktiebolaget (ASEA, English translation: General Swedish Electrical Company Limited) was founded in 1883 in Västerås, Sweden by Ludvig Fredholm[21] as manufacturer of electrical light and generators.[22]
Brown, Boveri & Cie (BBC) was formed in 1891 in Baden near Zurich, Switzerland by Charles Eugene Lancelot Brown and Walter Boveri[23] as a Swiss group of electrical engineering companies producing AC and DC motors, generators, steam turbines and transformers.
On 10 August 1987, ASEA and BBC announced they would merge to form ASEA Brown Boveri (ABB).
Products and services
Major product launches and innovations
In 1990, ABB launched Azipod, a family of electric propulsion systems that extends below the hulls of large ships, providing both thrust and steering functions. Developed in cooperation with the Finnish shipbuilder Masa-Yards, Azipod has demonstrated the viability of hybrid-electric power in seagoing vessels, while also increasing maneuverability, fuel efficiency and space efficiency.[96][97]
In 1998, ABB launched the FlexPicker, a robot using a three-armed delta design uniquely suited to the picking and packing industry.[98]
In 2000, ABB brought to market the world's first commercial high-voltage shore-to-ship electric power, at the Swedish port of Gothenburg. Supplying electricity to berthed ships from the shore enables vessels to shut down their engines while in port, significantly reducing noise, vibrations and carbon emissions.[99]
Former divisions
Power Grids
The Power Grids business area offered components for the transmission and distribution of electricity, and incorporated ABB's manufacturing network for transformers, switchgear, circuit breakers, and associated high voltage equipment such as digital protective relays. It also offered maintenance services.
A key part of Power Grids' offering were turnkey systems and service for power transmission and distribution grids and for power plants; this included electrical substations and substation automation systems, flexible AC transmission systems (FACTS), high-voltage direct current (HVDC) systems, and network management systems. The division was subdivided into the four business units High Voltage Products, Transformers, Grid Automation and Grid Integration.
In 2010, ABB's North American headquarters in Cary, North Carolina, announced a new partnership with Sensus of Raleigh, North Carolina, to develop technologies to work together on smart grids.[108]
During 2014, ABB formed a joint venture with Hitachi
Legacy brands
Bailey Controls
Founded in 1916 by Ervin G. Bailey, Bailey Controls developed the world's first steam boiler meter before becoming an industry leader in control and instrumentation of automated processes. In 1989 the company merged with the Italian Elsag Group which also produced automation control and instrumentation devices. Elsag Bailey Process Automation would be acquired by ABB in 1999.[130]
Fischer & Porter
The Fischer & Porter Company was founded in 1937 being an industry leader in process instrumentation producing an industry-leading range of flow measurement products, along with devices to measure, indicate, and control other process variables including pressure (most famously the Fisher-Porter tube), temperature, level, and more.[131] In 1994 Fischer & Porter was acquired by Elsag Bailey Process Automation, which in turn was acquired by ABB in 1999.[131]
Management
Since August 2024, Morten Wierod has been ABB's CEO.[132] During September 2013, Ulrich Spiesshofer was named ABB's CEO, succeeding Joe Hogan.[133]
In August 2019, ABB announced industrial veteran Björn Rosengren would take over as CEO starting March 2020. Rosengren was then serving as CEO of Swedish mining-equipment giant Sandvik. In the meantime, ABB Chairman Peter Voser was appointed interim CEO on 17 April 2019, succeeding Ulrich Spiesshofer, who stepped down after five-and-a-half years.[134] Voser was elected chairman of the board of directors in April 2015[135] and succeeded Hubertus von Grünberg, who had been chairman since May 2007. Jürgen Dormann was chairman from 2002 to 2007, and Percy Barnevik from 1999 to 2002.
Ownership
The largest single stake in the firm is held by the Swedish investment company Investor AB, controlled by the Wallenberg family, which holds 12.9%.[136] Activist investor Cevian also holds a large stake in the company.[137]
Controversy and litigation
In December 2022, ABB was charged by the U.S. Securities and Exchange Commission for violations of the Foreign Corrupt Practices Act in a bribery scheme in South Africa. It was ordered to pay a total of $460 million to U.S. authorities to settle criminal and civil charges.[138] ABB paid more than $37 million in bribes to a high-ranking Eskom official to influence contracts awarded by the state-owned electric utility company for work on the Kusile Power Station project between 2014 and 2017. The official had influence over the awarding of contracts for power projects in the country. In exchange for the bribes, ABB secured a $160 million contract to provide services related to cabling and installation work at Eskom's Kusile Power Station, one of the largest coal-fired power plants in the world.[138][139]
In a parallel case, the United States Department of Justice fined ABB $315 million to settle criminal charges. ABB had to pay $75 million in civil penalties to settle the SEC's charges.[138]
See also
Further reading
- ABB (2005): The Dormann Letters, Jürgen Dormann/ABB Group, Zurich.
- Bélanger, Jacques et al. (2001): Being local worldwide: ABB and the challenge of global management, Cornell University Press, New York. ISBN 0-8014-3650-8.
- Kevin Barham, Claudia Heimer (1998): ABB: the dancing giant – creating the globally connected corporation. Financial Times, London. ISBN 0-273-62861-5.
External links
References
- ABB Ltd. Integrated Report 2024 30 January 2025, retrieved 10 March 2025^
- Major shareholders ABB Group, 2025-01-23, retrieved 2025-03-06^
- ABB Ltd. Articles of Incorporation of ABB Ltd, Zurich