ABB Invests $200M for European Grid Transformation

ABB announced that it is investing around $200M in its medium-voltage manufacturing capabilities across Europe over the next three years to expand production capacity, accelerate the transition to next-generation technologies for power distribution and strengthen supply for customers modernizing their power infrastructure. This includes utilities, industry, and rapidly growing data center markets.

According to the International Energy Agency, electricity’s share of final energy consumption is expected to rise from around 20 % today to nearly 30 % by 2030, highlighting the urgency and scale of grid expansion. “This $200M investment will strengthen ABB’s medium-voltage manufacturing and technology capabilities in Europe and support customers as electricity demand increases and the grid evolves,” said Morten Wierod, ABB’s Chief Executive Officer. “Demand is being driven by major structural trends, from grid modernization and the integration of renewables to data center growth and the transition to more sustainable technologies. These investments will help us expand capacity, improve availability and shorten lead times for customers in Europe and beyond, empowering them to adapt to the changing energy landscape.”

Investing in European manufacturing capabilities

The investment strengthens the company’s ability to deliver critical medium-voltage switchgear and grid automation technologies. It includes a new $100M facility in Dalmine, Italy, to support growing demand for air-insulated and SF₆-free switchgear and breakers. A further $100M investment is for capacity expansion projects across factories in Bulgaria (Rakovski), Finland (Vaasa), Germany (Ratingen), Norway (Skien) and Poland (Przasnysz), scaling production of technologies such as gas-insulated switchgear (GIS) and vacuum interrupters and relays enabling more reliable and resilient power distribution.

This programme builds on recent investments in ABB’s UK and Hungary operations. In Kecskemét, Hungary, the investment of approximately $15M adds R&D and production capabilities for connector technologies, enhancing medium-voltage network reliability and further expanding ABB’s portfolio of grid resilience solutions for utility and renewable customers. In Nottingham, UK, ABB invested around $35M to expand production of earthing and lightning protection technologies to protect critical infrastructure and buildings, data centers, and communications and transportation networks from lightning strikes and electrical surges. Together, these actions reflect ABB’s focus on building resilient manufacturing capabilities for technologies that connect and protect the evolving grid.

(Surce: ABB Ltd.)