ABB Invests Dollar 266 Million in Sweden Robotics Hub: ABB is investing $266 million in a robotics hub in Sweden. This move announced on a Wednesday, is in response to customer requests to relocate manufacturing operations from Asia to avoid supply chain bottlenecks.
Despite worsening US-China relations, a shift is occurring. Manufacturers and automation enthusiasts are rethinking their reliance on China.
ABB’s CEO, Bjorn Rosengren, said reshoring was making a big comeback. He’s sure his business will stay in China. In a Reuters interview, he said, “Certain companies, especially American ones, may hesitate to invest in China and choose other Asian countries.” He wisely said this.
Rosengren mentioned the slower Chinese economic recovery from COVID-19. Still, he has not changed his mind about the country’s future. “It’s the most significant growth market, and China will stay strong, focusing on domestic growth rather than global impact.
China is still the world’s biggest robot market. ABB acknowledges China’s importance and has no plans to cut spending there. The Swiss company made significant changes in the US and opened a $150 million robotic castle in Shanghai.
Opening in 2026 in Vasteras, Sweden, the fortress will mainly serve European customers. It’s an intelligent solution for Europe’s growing robot demand, projected to grow at 7% annually. The increase is expected to be 50%.
Bjorn Rosengren stressed ABB’s reliance on robotics. Recent division success will continue.
In a pandemic, supply lines are crucial. ABB promptly responds to this call due to its awareness of global supply line risks and challenges, as highlighted during the pandemic.
Fanuc Corp and Kuka are ABB’s rivals. BMW, Scania, and VW employ ABB robots.
Globalization is slowing, and businesses are shifting towards localization. “It’s becoming more local,” Rosengren said.
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