ABB Ltd. (ABB) received a contract from the transmission system operator in Finland, called Fingrid, for expansion and upgrade of an existing 400/110 kV (kilovolt) substation. The contract is valued at $19 million and is a part of the project to solidify Finland’s main electrical grid. The extensive investment program being undertaken also aims at arranging the addition of a new carbon neutral electricity generation capacity to the grid.
Designing, engineering, supplying, erection and commissioning work of the substation will be carried out by ABB. The company’s job involves renovation and expansion of the 400 kV outdoor switchyard, replacement of the 110 kV outdoor switchgear and upgrade protection systems at the Hikiä substation, located in Hausjärvi in southern Finland. The 400 kV disconnecting circuit breakers and the 110 kV gas-insulated switchgear are among the major products to be provided by ABB. The project is expected to be completed by 2013.
Recently, the company also received a $24 million order to provide electrical power and propulsion systems for the two next generation ‘Ramform’ vessels, which is being constructed by Mitsubishi Heavy Industries. These ships are capable of three-dimensional (3D) seismic data attainment for sea bottom resource exploration. The order delivery is due in 2013.
The demand for electricity for both industrial and residential purpose is rising substantially in Algeria. Installation of the new substation as well as upgrade of the existing ones will greatly enhance the distribution capacity of the power stations and will also strengthen the dependability of grid and boost the power stability in the area.
Air- and gas-insulated substations from ABB lead the worldwide market and have capacity to cover voltage levels as high as 1,100 kilovolt. ABB Ltd.’s power and automation technologies offer solution for sustainable development, thus helping to shield the world’s resources. The company has a number of technologies for the solar power industry with 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 the company’s 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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