) has been awarded a $65 million contract by Mass Global Investment
(MGI) for its electrical and automation solution. The turnkey
solution from ABB will be used for a new gas-turbine power
plant and also for the extending of a substation.
The new system will increase power supply and will also
strengthen the transmission infrastructure in northern Iraq. Third
quarter's order bookings of ABB include this contract.
The project involves extension of 500 MW Dohuk 1 power station
built by ABB, started in 2011. The new Dohuk 2 power plant will
have four gas turbines with a capacity of 125 megawatt (MW) each.
ABB will connect two plants by extending the existing 132 kilovolt
The Dohuk 2 power plant is a 500 MW open cycle gas turbine
(OCGT) unit and will be fueled by natural gas and light fuel oil.
Under the deal, ABB will design, supply and install the electrical
balance of plant (EBoP) solution and provide the grid connection
for the new power plant. Low- and medium-voltage switchgear, the
auxiliary systems for fuel supply and the control and automation
system are among the key products to be supplied by ABB. The new
plant is expected to be operational in ten months.
The project helps in the economic and social development of the
region. It will enhance power supply for the people.
Moving ahead, ABB expects the emerging markets to be a
significant growth driver; however, demand in mature markets is
also expected to improve. Customer capital expenditures have
increased with the rise in commodity prices. Increased capacity in
some later-cycle infrastructure-related businesses continues to
exist. In many sectors price stability has been attained and
ABB has increased its prices to offset rising raw material
However, ABB Ltd's results are likely to be adversely impacted
by macroeconomic weakness as more than 80% of the company's orders
are derived from outside the US. A major competitor of ABB Ltd. is
ABB Ltd. is a Zurich (Switzerland) based power and
automation technology company. The company operates in
approximately 100 countries, organizing its global structure into
five regions: Europe, the Americas, Asia, the Middle East and
Currently, we maintain a Zacks #3 Rank (short-term Hold
recommendation) on ABB Ltd.
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