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ABB begins construction of new robotics factory in Shanghai

Credit: REUTERS/ARND WIEGMANN

ABB has started construction of a new robotics factory in Shanghai, China, the Swiss engineering company said on Thursday, shrugging off concerns about a slowdown in the world's second-largest economy.

ZURICH, Sept 12 (Reuters) - ABB ABBN.S has started construction of a new robotics factory in Shanghai, China, the Swiss engineering company said on Thursday, shrugging off concerns about a slowdown in the world's second-largest economy.

ABB, which competes with Japan's Fanuc Corp. 6954.T and Germany's Kuka KU2G.DEin building industrial robots used in the automotive sector among others, is spending $150 million on the site which is due to open in early 2021.

The company predicts the global robot sales will grow from $80 billion at present to $130 billion by 2025. China is the world's largest robotics market, buying a third of all industrial robots in 2017.

China's second-quarter economic growth slowed to its weakest pace in at least 27 years as demand at home and abroad cooled in the face of a bruising trade war with the United States.

(Reporting by John Revill, editing by Riham Alkousaa)

((John.Revill@thomsonreuters.com; +41 58306 7022; Reuters Messaging: john.revill.thomsonreuters.com@reuters.net))

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