Dive Brief:
- Switzerland-based ABB said it will invest $120 million to expand production of its low-voltage electrification products in the U.S.
- The investment will increase the capacity of manufacturing facilities in Selmer, Tennessee, and Senatobia, Mississippi, to support growing demand for data centers, buildings and utilities, according to a release.
- As part of its U.S. expansion, ABB opened a $100 million manufacturing plant and innovation lab for electric drives in New Berlin, Wisconsin, in October. The company is also set to open a $40 million factory next month in Albuquerque, New Mexico.
Dive Insight:
Over the past three years, ABB has poured more than $500 million into its U.S. business, which the company said is its largest global market and a key growth driver.
Last year, the U.S. business accounted for about 27% of ABB’s annual revenue, with demand rising for advanced electrification technologies used by utilities companies and data centers.
“Our new facilities in Selmer and Senatobia will keep our customers at the cutting edge of the energy transition, and help them meet their performance, productivity and energy efficiency goals,” ABB CEO Morten Wierod said in a statement.
As part of the company’s recent pledge, ABB has agreed to spend $80 million on replacing its Selmer operations with a new 320,000-square-foot facility.
The factory, expected to open late next year, will manufacture electrical distribution equipment such as busway and bus plug products, according to a release. It also will be capable of producing 50% more goods than the older facility, and add 50 jobs to the area.
Additionally, ABB is investing $40 million to double its 500,000-square-foot facility in Senatobia, where the company manufactures circuit breakers. The expansion is scheduled to be ready by June 2026, creating 200 jobs.
ABB is one of the largest global engineering companies focused on electrification, motion, automation and robot technologies, operating in more than 100 countries. It has a large U.S. footprint, with nearly 40 manufacturing, distribution and operational facilities across 20 states.
