ABB Ltd. (ABB - Analyst Report) further strengthened its presence in Brazil by opening a fifth plant in Sorocaba near São Paulo to manufacture low-voltage products, motors, generators and drive systems. The opening of this new plant is a part of ABB’s $200 million investment plan to support Brazil’s economic growth through infrastructure and industrialization projects with the help of ABB’s technology development and production capacity. Further, Brazil is enhancing its transmission and distribution infrastructure for the 2014 FIFA football World Cup and the 2016 Olympic Games.
The new facility began its operations in the second half of 2013 and, by 2015, this facility intends to generate as much as 1000 jobs, both directly and indirectly. Through this new factory, ABB can act as a single point of contact providing engineering, designing, assembling, packaging, testing and delivering equipment, while managing the assembly of compact substations.
Further, the factory also comprises service workshops to assist customers with maintenance and repair of motors. This apart, the plant also houses a repair and test workshop for analyzers and instruments. Moreover, ABB has ensured that this new plant matches the environmental requirements and therefore, apart from being highly energy efficient, the facility also makes the best use of natural light and recycles waste and water.
The presence of ABB in Brazil dates back to 1912, when ABB had supplied the electrical equipment for the first Sugar Loaf cable car in Rio de Janeiro. After that, since the 1950s, ABB has established factories and has been a key supplier to most of Brazil’s main infrastructure and industrialization projects, such as, the Itaipu hydro plant and transmission line, which provides 20% of Brazil’s electrical power.
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 negative impacts on the environment.
ABB currently holds a Zacks Rank #5 (Strong Sell). However, other stocks which are worth considering at the moment are Quanta Services, Inc. (PWR - Analyst Report), Enersys Inc. (ENS - Analyst Report) and AECOM Technology Corp. (ACM - Analyst Report). All three carry a Zacks Rank #2 (Buy).