Dive Brief:
- Switzerland-based manufacturer ABB plans to spend nearly $100 million to open a new production facility in New Berlin, Wisconsin, according to a press release.
- The Wisconsin plant will produce industrial electric drives and provide additional services for customers, the company said April 4. The facility is expected to be completed in late 2024 and will replace a nearby facility, which currently employs 720 workers.
- The factory is part of a larger wave of U.S. investments totaling $170 million, which ABB says will help the company meet growing demand for the manufacturer's electrification and automation businesses.
ABB's investment toward U.S. expansion
Dive Insight:
The latest Wisconsin investment follows ABB’s investments in Albuquerque, New Mexico, and Auburn Hill, Michigan.
“The United States is critical to ABB’s success as a market that will continue to grow and benefit from our product portfolio that enables the transition to a more energy-efficient future,” CEO Björn Rosengren said in a statement.
The U.S. is ABB’s largest market, comprising 24% of the company’s yearly revenue. Since 85% of its sales are from locally manufactured products, executives said they expect growth in the U.S. market will translate to success for ABB's business.
ABB produces electrification and automation solutions for its customers.
The company also said recent legislation such as the Inflation Reduction Act, CHIPS and Science Act, and the Bipartisan Infrastructure Law gave the company confidence to grow its manufacturing capacity, distribution systems and technology innovation in the U.S.
“The Inflation Reduction Act is triggering investment in clean energy and supporting businesses that can produce technology locally,” US Country Holding Officer of ABB Michael Gray said in a statement.
ABB joins a growing list of manufacturers that have cited recent legislation as a reason for increasing their investments in the U.S.
But the manufacturer also cited economic research to justify the investment. The manufacturer said it expects global electrification infrastructure investments to total $1 trillion by 2040, citing BloombergNEF estimates. ABB also said it projects 25% of all global electrification infrastructure investments will take place in the U.S.
