ABB Ltd. (ABB) is now a part of the project to meet the rising demand for electricity in Saudi Arabia. The company received above $250 million order from the Saudi Electricity Company (SEC), Saudi Arabia’s national power transmission and distribution operator, to construct new substations while strengthening the old ones. The fourth-quarter 2011 bookings of the company were included in this current order.
South-west of Al-Hassa in the eastern region is the location for one of the new gas-insulated switchgear (GIS) substations, which will help in transmission of an additional 2,000 megawatt (MW) of electricity from a new gas-fired power plant. The plant is being built by an independent power producer adjacent to SEC’s existing Qurayyah power station.
The project involves construction of six other new distribution substations and development of three existing ones in Riyadh and other cities in the central region.
ABB will conduct the design, supply, installation and commissioning of the new substations. The company will also supply key equipment, such as GIS, transformers, shunt reactors and capacitor banks and a range of solutions including SCADA (supervisory control and data acquisition) as well as automation, control, protection and communication equipment, which will meet the global IEC 61850 standard.
Based in Zurich (Switzerland), ABB Ltd. is a global provider of power and automation technologies that enable utility and industry customers to improve performance, while lowering environmental impact. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle East and Africa. A major competitor of ABB Ltd. is Siemens AG (SI).
Currently, we are maintaining a Zacks #4 Rank (short-term Sell recommendation) on ABB Ltd.
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