HEFEI-BASED COMPANY A MODEL OF THE FOCUSED FACTORY CONCEPT

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HEFEI-BASED COMPANY A MODEL OF THE FOCUSED FACTORY CONCEPT
26 June 2001 - ABB Automation Technologies

ABB, the global technology group, announced today it has launched a new focused factory called ABB Distribution Transformer (Hefei) Ltd.

The plant specializes in manufacturing oil-filled distribution transformers in the 50 to 400 KVA range, up to the 15 kV high voltage level. The production output is 12,000 units annually, making the Hefei plant the largest producer of distribution transformers in China.

"Hefei is a very good example to demonstrate our focused factory concept, which concentrates on a special product range and allows a high output of world-class products," said Peter Smits, Executive Vice President and head of Power Technology Division of ABB Group. "In this factory, we really create value for our customers."

ABB Distribution Transformer (Hefei) Ltd. will use the most advanced assembly equipment to guarantee quality and reduce the total cycle time from order to final shipment. The new Hefei factory is intended to become a production model that will be copied by ABB transformer factories elsewhere in the world.

Smits said ABB Distribution Transformer (Hefei) Ltd. complements ABB's superior market presence in China, and reflects ABB's long-term commitment to contribute to sustainable development in China. "There will be a very positive impact on the economy in the Hefei region, because the factory will employ highly qualified local people, and will work together with many local suppliers," Smits said.

http://www.abb.com

About: ABB Automation Technologies
ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs around 105,000 people.
ABB has streamlined its divisional structure to focus on two core businesses: Power Technologies and Automation Technologies. The Oil, Gas and Petrochemicals division is slated for divestment.

ABB Power Technologies serves electric, gas and water utilities as well as industrial and commercial customers, with a broad range of products, systems and services for power transmission, distribution and automation.

ABB Automation Technologies blends a robust product and service portfolio with end-user expertise and global presence to deliver solutions for control, motion, protection, and plant integration across the full range of process and utility industries.

In addition to ABB's automation activities directed at the oil and gas industries, ABB Lummus Global continues to design and supply production facilities, refineries and petrochemical plants.

ABB's former Upstream business, divested in July 2004, is now part of Vetco International (www.vetco.com).

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