Weeks after ABB spun off its power grids business into a joint venture with Hitachi, the unit’s leader says it’s positioned for growth even as it navigates the pandemic.
The unit, which has its Americas headquarters at Raleigh’s Centennial Campus, has already committed to footprint growth, but its top exec has even higher ambitions for the business.
Claudio Facchin, CEO of Hitachi ABB Power Grids, said on an earnings call last week that the new unit “is well positioned as leading when it comes to market, technology, installed base and offering and portfolio.”
“We are in attractive markets, roughly $100 billion worth of market that we’re serving, growing on average 2 percent to 3 percent per year,” he told analysts, noting that the business unit has been investing its growth for years readying for an industry “transformation.”
While the pandemic has caused “challenges” in the short term, the joint venture is eyeing big, long-term opportunities, “such as the significant stimulus packages that would allow to accelerate decarbonization efforts through the green energy transition in most markets,” Facchin said in reference to various programs governments and central banks have unleashed to combat the pandemic’s economic turmoil. And those opportunities include off-shore wind, which requires high voltage, direct current interconnections and other technologies in Hitachi ABB’s sweet spot.
“Of course, we’re still in the midst of the pandemic, and there is still uncertainty on how fast and what shape that recovery will take,” Facchin said.
In particular, Covid-19 is impacting product turnarounds. Typical orders take about 18 months to convert to revenue, meaning the impact could be felt into 2021. Facchin said the company is taking “all necessary cost measures.”
Combined, Hitachi and ABB show 250 years of “technology heritage,” Facchin said.
“But we also have an enhanced talent pool across both energy and digital,” he said. “There is a unique contribution that we will drive going forward for the growth plan that we have as committed to the 2025 plan.”
Original Article Source: WRAL TechWire