Boston, MA 10/03/2014 (wallstreetpr) – ABB Ltd (ADR) (NYSE:ABB) has won a $30 million contract for four new turnkey substations in Bangladesh. The four new substations up for constructions will have a generating capacity of $132/33KV and will be manufactured in facilities at Rangamati, Khagrachori, Bianbazar and Sunamganj.
Contract Terms
Terms of the contract involve ABB Ltd (ADR) (NYSE:ABB) offering diverse services ranging from designing installation and commissioning of the substations. ABB will also have to extend switch gears and power transformer for both high and medium voltage as well as providing equipment for control and protection. The contract also stipulates that the company will have to equip the substations with automation systems that comply with the global IEC 61850 communication standards.
Constructions of the four substations are part of the country’s initiative to expand power initiatives while enhancing efficiencies to cater for increasing power demand. The generated power from the project will reportedly cater for up the needs of up to 450,000 households. The substations will also help in minimizing environmental pollution of carbon emissions from other unreliable sources.
ABB New Strategy
The signing of the agreement comes in the wake of ABB Ltd (ADR) (NYSE:ABB) disclosing its Next level strategy for 2013-2020. As per the strategy, the company will seek to implement a number of initiatives that target enhancing operations efficiencies while also paying attention to innovative technologies expected to drive future growth.
ABB Ltd (ADR) (NYSE:ABB) has exited its non-profitable businesses having already sold Thomas Betts heating and ventilation business for $260 million to Trinity Industries. The company has also been signing a number of lucrative deals having already sealed a $70 million contract from Swiss Railways. Under the contract, the company will provide the required novel traction converters to be used for modernization of locomotives fleet in the country. ABB has also partnered with RWE and TU Dortmund to develop smart-grid distribution automation systems in Germany.
