Leading power and automation technologies supplier
) recently announced that its venture capital unit, ABB
Technology Ventures, will be investing in Persimmon Technologies
in Massachusetts. The two companies are coming together to extend
research and development (R&D) in the motor component
manufacturing industry, especially the new 3D deposition
Prior to ABB, some other investors including Intel Capital, a
) had invested about $6 million in the previous round of
Persimmon, since its inception in 2011, has been focused on
the development of hybrid-field motor technology. This technology
uses the novel 3D deposition process to manufacture motor
components to reduce costs and increase power density. The
technology allows the company to cut down on some of the
manufacturing processes, thus saving time.
The preliminary version of the motor was tested to produce
increased output with improved area for the stationary part of
the motor. This motor, while being more efficient, is similar in
size and incurs material costs akin to its counterparts.
Apart from this motor technology, the fund will also aid in
the further development of Persimmon's portfolio of vacuum
robotics products and a number of new products. This fund will
also facilitate the two companies to trade knowledge about the
existing industrial motor products of Persimmon.
Based in Zurich, Switzerland, ABB is a leader in power and
automation technologies that enable utility and industry
customers to improve performance while lowering negative impacts
on the environment. The company is focused on reducing its
selling expenses by 3-5% every year by improving the supply
management along with an increase in return on investment (ROI)
in sales and R&D expenditure. These new motors will allow ABB
to increase its share in the motor components industry while
maintaining its expense levels.
A major portion of the Persimmon's R&D is at present
funded by four grants from National Science Foundation. The
ongoing commercialization of its promising hybrid-field
technology is likely to leverage ABB's business going
ABB currently holds a Zacks Rank #5 (Strong Sell). However,
some other stocks which are worth considering at the moment
Quanta Services, Inc.
), both carrying a Zacks Rank #2 (Buy).
ABB LTD-ADR (ABB): Free Stock Analysis Report
ENERSYS INC (ENS): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
QUANTA SERVICES (PWR): Free Stock Analysis
To read this article on Zacks.com click here.