ABB expands in US and China

Zurich-based energy tech manufacturer ABB has announced two separate initiatives to expand operations in the US and in China: $120 million to expand transformer manufacturing and an acquisition of Siemens’ Wiring Accessories business respectively.

ABB announced both the financing and acquisition today.

The $120 million investment will go into two US manufacturing sites to support the company’s expected growth in key industries, including data centres and utilities. The acquisition, on the other hand, was announced in May 2024, expanding ABB’s electrification portfolio.

North American transformer manufacturing

ABB’s investment is expected to create 50 new jobs at a new advanced manufacturing facility in Selmer, Tennessee, and will double the size of its existing manufacturing site in Senatobia, Mississippi, creating 200 new jobs.

$80 million will go towards building a new 29,700m2 facility in Selmer, TN, replacing the existing ABB Selmer operations and increasing production capacity by more than 50%. The new factory will produce essential electrical distribution equipment for large-scale industrial and technology-driven facilities, including data centres, factories and high-rise residential and office spaces where consistent, high quality power is critical.

The new facility, expected to open in Q4 2026, will add 50 new skilled jobs, increasing ABB’s Selmer workforce by more than 25%.

The remaining $40 million will double the footprint of its Senatobia, MS, facility to meet increasing demand for advanced low voltage circuit breakers from customers across North America. Expanding production will also support growing demand from customers across North America who are upgrading their ageing power infrastructure and expanding their operations.

When the new facility opens in Q2 2026, the 200 new jobs will increase the workforce in the Senatobia facility to more than 1,000.

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In the past three years, ABB has invested more than $500 million in its US business, including opening a new $100 million manufacturing facility and innovation laboratory for industrial electric drives in New Berlin, Wisconsin in October 2024. A new $40 million ABB factory will open in Albuquerque, New Mexico in April 2025, to manufacture the latest technologies for power grid hardening and resilience.

All new ABB sites showcase the latest technologies for sustainable operations, bringing together ABB’s digital and renewable energy solutions to increase energy efficiency and reduce emissions.

With approximately 17,000 people across the US, ABB has nearly 40 manufacturing, distribution and operational facilities across 20 states including nine major research and development centres.

Today, approximately 75-80% of the products ABB sells in the US are manufactured in the US. Since 2010, ABB has invested more than $14 billion in capacity expansion projects and M&A in the US.

An acquisition in China

Initially announced in May last year, the completion of ABB’s acquisition in China broadens their market reach and provides access to an expansive distributor network to support growth.

With the Siemens’ Wiring Accessories business, ABB gains wiring accessories, smart home systems, smart door locks and further peripheral home automation products, which will continue with the Siemens brand under terms of a licensing agreement.

The acquisition will also give access to a wide distribution network across 230 cities in China and provide additional expertise from regional sales, manufacturing operations and management teams.

Financial terms were not disclosed.

With a strengthened product range and distribution network, ABB says they are well positioned to deliver solutions that modernise buildings, improve energy efficiency and tackle the challenge of reducing carbon emissions.

Commenting in a release was Mike Mustapha, president of ABB Electrification’s Smart Building Division: “This acquisition strengthens ABB’s position and commitment to growth in China’s wiring accessories market, complementing our smart buildings technologies portfolio and enabling us to meet evolving customer needs by creating safer, smarter and more sustainable buildings.

“We are perfectly positioned to offer a full range of wiring accessories, home and building automation, energy distribution and management solutions, to address major local challenges such as rapid urbanisation, energy transition, electrification of buildings, decarbonisation and advancing AI and digitalisation.”

The revenue of ABB in the US was close to $9 billion in 2024, accounting for approximately 27% of the ABB Group total.