ABB Ltd. (ABB) was recently awarded an approximately $180 million contract from utilities Statnett of Norway and Energinet.dk of Denmark to provide a HVDC Light (high-voltage direct current) converter solution supporting the transmission link between the Norwegian and Danish power grids. The transmission technology will be built on 500 kV (kilovolt) link, the highest to be used in such transmission technology.
The interconnection between the two girds will be built underwater and will be 240 km long. This will enhance the transmission competency among the Norwegian system and the Danish system. The Norwegian system generates hydroelectric power whereas Danish system uses wind and thermal to generate power. The system will be built on ABB’s renowned MACH2 control system. The project is planned to be commissioned in 2014.
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. The company has expertise in the HVDC Light solution technology and its converters are being used in 20 locations worldwide.
However, ABB Ltd’s results are likely to be adversely affected by macroeconomic weakness as more than 80% of the company’s orders are derived from outside the US. A major competitor of ABB Ltd. is Siemens AG (SI).
Based in Zurich, Switzerland, ABB Ltd. is a power and automation technology company. The company operates in five segments: Power Products and Power Systems supply products and complete Transmission and Distribution (T&D) solutions to utility and industrial customers. Discrete Automation & Motion, Low-Voltage Products and Process Automation supply products, systems and solutions to customers across nearly all segments of the process and manufacturing industries, as well as specialist end markets, such as marine and utility. ABB Ltd. operates in approximately 100 countries and is globally structured into five regions, Europe, Americas, Asia, the Middle Eastand Africa.
We have a Zacks #2 Rank (short-term Buy recommendation) on ABB Ltd.
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