ABB Ltd (ABB) will be supplying a turnkey electrical balance of plant solution including a132 kilovolt (kV) substation to support a 360 megawatt (MW) power plant in Bangladesh. The contract was received from the Hyundai Engineering & Construction Company. The Electricity Generation Company of Bangladesh (EGCB), an enterprise of the Bangladesh Power Development Board (BPDB), owns and operates the plant.
The power plant and substation is to be built in Haripur on the outskirts of the capital city Dhaka and will meet the rising demand for electricity in the Chittagong and Dhaka area. ABB Ltd. will design, supply, install and commission the 132 kV substation. Important gears to be provided by the company include gas-insulated switchgear (GIS), the generator transformer, auxiliary and distribution transformers, generator circuit breakers and medium-voltage switchgear. The project is expected to be completed in 2013.
Business in the emerging markets are seen as prime benefactors for the company though rising demand levels in mature market also supports ABB’s future growth prospects. Price increases initiated by the company to meet the rising raw material costs will lead to margin improvement. ABB focuses on attaining profitable growth opportunities by maintaining a competitive cost position, strong balance sheet, strong presence in global market and a leading technology.
ABB Ltd.’s power and automation technologies offer a solution for sustainable development, thus helping to shield the world's resources. The company has a number of technologies for the solar power industry with a growing installed base. ABB Ltd. has witnessed improving signs in late-cycle power, with some recent large contracts.
However, ABB's results are likely to be adversely affected by macroeconomic weakness as more than 80% of the company's orders are derived from outside the US. A major competitor of ABB Ltd. is Siemens AG (SI).
ABB Ltd. is a Zurich (Switzerland) based power and automation technology company. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle East and Africa.
We maintain a Zacks #2 Rank (short-term Buy recommendation) on ABB Ltd.
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