ABB Ltd. (ABB) received an approximately $30 million order from the electricity and water operator in Qatar, named the Qatar General Electricity and Water Corporation (Kahramaa). As per the deal, ABB Ltd. will aid in meeting the rising demand for power for both residential and commercial purposes of the people of Doha, the capital city of Qatar, through the construction of two underground substations. The company will be involved in design, supply, installation and commission of the substations.
Dohaland, a subsidiary of the Qatar Foundation for education, science and community development, has undertaken a project called Musheireb with the motive to modernize and renovate Doha’s old city center, an area of about 35 hectare. The project is divided into five stages and the first one involves the construction of the underground substations. The later stages involve the construction of an underground pedestrian area, car parks, new building as well as restoration of historic structures.
The planned substations will employ ABB’s automation systems and the latest type of protection and control products. The project is expected to be completed by the end of 2012.
The emerging markets have significantly benefited the company and are expected to be a major driver of growth. With the increasing rate of industrialization in these regions, demand for energy efficient solutions like electrical grids and productivity enhancing means is on the rise. In 2011, the company expects to benefit from the emerging markets as well as in other regions, aiding its customers to construct and improve power infrastructure and enhance industrial efficiency and productivity.
ABB Ltd.’s power and automation technologies offer a solution for sustainable development, thus helping to shield the world’s resources. The company has a number of technologies for the solar power industry and also a growing installed base. ABB Ltd has witnessed improving signs in late-cycle power, with some recent large contracts.
However, ABB’s results are likely to be adversely affected by macroeconomic weakness as more than 80% of its orders are derived from outside the US. A major competitor of ABB Ltd. is Siemens AG (SI).
ABB Ltd. is a Zurich (Switzerland) based power and automation technology company. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle East and Africa.
We maintain a Zacks #2 Rank (short-term Buy recommendation) on ABB Ltd.
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