ABB gets $30m less than expected

Swiss-Swedish group ABB will register only $65-$70 million in orders on the Romanian market this year, down from the $78 million logged in 2001 and the $100 million forecast for 2002.
“We cannot talk about a decline in ABB’s Romanian-based business. There are certain projects, such as the one with Termoelectrica, which we have not materialised yet. At the same time, we cannot talk about a decline because our business is not shrinking here, it is just that fewer projects have been turned into effect until now. I think we will see orders totalling $65-$70 million,” Peter Simon, ABB Romania chairman told Ziarul Financiar.
ABB has indeed lost a good deal this year, that is building a system for Termoelectrica to meter the electrical power traded on the wholesale market, estimated at some 20 million euros. The contract was eventually awarded to Swiss Landis & Gyr, held by the US-based Kohlberg Kravis Roberts investment fund and by the German group Siemens. Although not directly connected, ABB’s losing this contract came at a time when it had sold its metering systems and equipment business to the German Ruhrgas Industries.
The ABB Group, however, has landed even more big contracts on the market this year. One of these major contracts is the $37 million deal signed with Transelectrica in view of retooling Slatina electrical power station.
ABB is a leading energy equipment, technology and automation provider worldwide. ABB’s orders in Romania comprise the business of ABB Romania, the local branch of the group, and of the companies part of the ABB Group, which conclude contracts on the domestic market.
Peter Simon estimates orders to total approximately $80 million next year, with the local branch accounting for $30 million of the total.
ABB Group has announced plans to participate in the privatisation of the electricity distribution in Romania along with an operator specialising in distribution.
Its most important partners on the Romanian market include Transelectrica, Electrica, Hidroelectrica, Termoelectrica and the European Drinks Group, dealing in foodstuffs and the beverage industry.