ABB To Invest $40 million In Saudi Arabia Power Projects

ABB Ltd (ABBN.VX) Monday said it will invest around $40 million to construct a new manufacturing plant for high-voltage gas-insulated switchgear and a transformer service workshop in Saudi Arabia, to serve the growing power infrastructure needs in the region.

MAIN FACTS:

- The switchgear plant will initially manufacture 132 kilovolt (kV) GIS, with higher ratings to follow.

- The transformer service center will support ABB's large installed base in the region and serve customers with a more complete portfolio.

- The two new facilities will occupy 40,000 square meters of space and will be located in the city of Dammam in the eastern part of the country and home to the largest port in the Arabian gulf.

- The economic growth experienced by Gulf countries, led by oil and natural gas revenues in the region, has highlighted the need for power infrastructure to secure supplies of electricity, both at times of peak demand and in the long term.

- The GCC (Gulf Co-operation Council) region's total electricity consumption has risen by nearly tenfold since 1980.

- Saudi Arabia is the largest consumer, accounting for around half of the total GCC electricity consumption and growing faster than GDP, propelled by increased household, industry and commercial sector demand.

-Zurich Bureau, Dow Jones Newswires, [phone]; [e-mail]