ABB makes major manufacturing investment in Indonesia to meet growing requirements for power plant equipment in South East Asia
Zurich, Switzerland, June 14, 1996 - ABB, the international electrical engineering company, today opened a new greenfield production facility for power generation equipment in Indonesia. The new factory, comprising over 27,000 square meters of manufacturing and office space, will provide engineering services and manufacturing facilities for power plant boilers and heat exchangers, as well as retrofit and service facilities for turbines The factory will belong to ABB`s new joint venture company, P.T. ABB Energy Systems Indonesia (ABB ESI), which is 79% owned by ABB, and 20% by P.T. Pal Indonesia and 1% by P.T. Barata Indonesia - two of the state-owned companies under the control of Indonesia`s Agency for Strategic Industries. The new factory currently employs 700 people and is located in Surabaya, East Java - Indonesia`s second largest city. As manufacturing gets under way, ABB plans to increase the number of employees to 1,000 within the near future.
The new factory, with its combined engineering facilities, represents a major local investment in the region. It will benefit from an extensive transfer of ABB`s latest technologies in this field to become ABB`s main manufacturing and service center for power plant equipment in South East Asia. Armin Meyer, head of ABB`s global Power Generation segment and a member of the ABB Group Executive Committee, said at the opening ceremony today: "The new greenfield factory in Surabaya is an important step in enabling ABB to more effectively serve the rapidly growing power generation market in Indonesia with locally manufactured equipment which incorporates ABB`s most advanced designs. The plant will also provide products and total power plant service to customers in neighboring Asian countries and demonstrates ABB`s commitment to supporting strategic industries in the Asia-Pacific region."
P.T. ABB Energy Systems Indonesia is part of ABB`s Power Generation segment which employs more than 46,000 people worldwide with orders in 1995 of over US$ 10 billion. The ABB Group employs approximately 210,000 people with orders in 1995 of over US$ 36 billion.
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