ABB has completed the divestment of all its shares in two Shanghai-based electrification joint ventures, Shanghai ABB Breakers and Shanghai ABB Guangdian Electric.
The shares have gone to holding subsidiaries of Shanghai Guangdian Electric Group (SGEG), ABB’s joint venture partner in the two companies. Financial details have not been disclosed.
Tarak Mehta, President of ABB’s Electrification business, said: “The completion of this divestment reduces the complexity of the electrification business in China and improves our focus in this key market. It is a significant step forward in ABB’s ongoing strategy of active portfolio management.”
ABB acquired a 60 per cent stake in the two joint ventures as part of the GE Industrial Solutions acquisition in 2018. With the sale now complete, SGEG now owns the two Shanghai companies. ABB and SGEG will continue to operate as long-term partners via a multi-year mutual supply agreement.
ABB’s relationship with China dates back to 1907. After decades of development, ABB has a full range of business activities in China, including R&D, manufacturing, sales and services. The company operates 44 local companies with nearly 20,000 employees located in more than 130 cities.
China is ABB’s second-largest market worldwide with more than 90 per cent of sales from locally made products, solutions and services. ABB has invested more than $2.4bn in China since 1992.