) has one of the most promising power infrastructures across the
globe. The company has assisted many leading power plants in
strengthening their existing power grid by supplying
transformers. In the last reported quarter (third quarter 2013),
both the Power Products and Power Systems divisions were
the primary contributors to revenues with 7% and 10% growth,
On Dec 20, the company received an order from Poland worth $37
million to augment its national power grid. Shares of ABB rose
2.6% following the news. Poland's state-owned transmission system
operator, PSE, S.A., placed the order with ABB. As per the deal
ABB is required to supply 12 low loss, low noise power
transformers to the existing power grid in Poland.
Transformers are key components of an electrical grid and are
essential for efficient and safe conversion of electricity
between diverse voltage systems. ABB's transformer portfolio
primarily comprises power transformers rated up to 1,200 kV, dry
and liquid-distribution transformers, traction and special
application transformers as well as related services and
Power transformers are primarily required to adjust voltage
levels across the power value chain. This includes increasing the
voltage level at the generation stage to reduce losses during
long-haul transmission, and lowering the voltage to safe and
manageable levels prior to distributing electricity to homes,
factories and offices.
As per the contract, ABB is responsible for the design,
supply, installation and commissioning of the transformers, each
weighing approximately 360 metric tons. These transformers will
be installed in 11 substations across the country. Out of these
some substations are new installations while others require
upgrading. ABB expects to complete the delivery of the 12
transformers between 2014 and 2017.
Prior to this, ABB has already installed 60 transformers in
Poland and has a huge manufacturing footprint there. Based in
Zurich, Switzerland, ABB is a leader in power and automation
technologies that enable utility and industry customers to
improve performance while lowering the environmental impact.
ABB currently has a Zacks Rank #3 (Hold). However, other
stocks which are worth considering at the moment are
Quanta Services, Inc.
). Enersys and VSE both have a Zacks Rank #1 (Strong Buy) while
Quanta has a Zacks Rank #2 (Buy).
ABB LTD-ADR (ABB): Free Stock Analysis Report
ENERSYS INC (ENS): Free Stock Analysis Report
QUANTA SERVICES (PWR): Free Stock Analysis
VSE CORP (VSEC): Free Stock Analysis Report
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