Swiss technology firm ABB is set to invest $280 million in the expansion and modernization of its European robotics hub in Vasteras, Sweden, the company announced on Wednesday. The investment will result in a new integrated robotics campus at the existing site, replacing nine buildings that have been standing since 1974. Construction is slated to begin next year, with the campus expected to open in late 2026.
The project aims to increase ABB's production capacity by 50%, a move designed to better serve the growing European market. The existing facility already manufactures approximately 95% of the robots ABB sells in Europe, according to Chief Executive Bjorn Rosengren. The expansion will also create employment for 1,300 people.
"The investment in our new campus is driven by customer demand and projected market growth," stated ABB CEO Björn Rosengren. The company anticipates that the European robotics and automation market will grow by 7% annually from 2023 until the end of 2027. This growth is fueled by companies repatriating production from Asia due to various factors including greater government incentives, rising geopolitical tensions, and supply chain bottlenecks experienced during the COVID-19 pandemic.
The company's decision aligns with its strategy of serving customers with more locally manufactured products. "This new Campus is key in supporting our European customers as they accelerate investment in robotics and AI due to the reshoring of industry, the move to more sustainable supply chains and long-term labour shortages," said Sami Atiya, President of ABB’s Robotics and Discrete Automation Business Area.
Upon completion, ABB will have invested $450 million since 2018 in enhancing its three robotics facilities, including its Asian site in Shanghai and its Auburn Hills facility that supports the Americas. ABB's wide range of products, from industrial motors and drives to electric vehicle chargers, are supplied to companies such as BMW (ETR:BMWG), Scania, and Volkswagen (ETR:VOWG_p).
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