Energy drives "ABB Romania" to a 60 million turnover

The work on our electricity transit and distribution grids, as well as the upgrades of the electrical power stations have brought "ABB România", a turnover of 50-60 million Euros. Peter Simon, ABB"s manager for Romania, Romania, Bulgaria and Republic of Moldova, stated: "This is a business area which is extremely stable for ABB, with annual evolutions which are not spectacular from a rate of growth point of view. The modernization of the Romanian national electricity transit and distribution grid will not be affected by the crisis in 2009. Very important works are under way, for which funding is, for the most part, secured. Our main customers for this segment are state companies, such as Transelectrica, Electrica, but also private distributors and suppliers such as Enel, E.ON and CEZ".

Mr. Simon said that in 2008, "Transelectrica" was "ABB""s greatest customer in Romania, with individual projects worth from 3 to 10 million Euros each. Most of the investments were made in modernization works for the stations in the production areas. "Electrica" has contracted individual projects worth from 1,5 to 5 million Euros, and "E.ON" has begun acquiring "ABB" equipment for the works it has underway on the Moldova distribution grid. The implementation of the works will be done by the "E.ON" employees, and the final delivery will be done by "ABB". One of the most important works finalized in 2008 is the Sibiu Sud station. The beneficiary of the works is "Transelectrica", and the modernization of the station was done by the consortium made up of "ABB Germany, ABB Romania and Areva Germany". "ABB Romania" was a general contractor for the local part of the works, being tasked with designing, engineering, as well as the construction and commissioning of the station. Another important work for the new station was the new 110/20 kV station, whose beneficiary was "ENEL Distribuţie Dobrogea". The power transforming station, located in Constanţa, provides electricity for Mamaia consumers, and is intended to provide an additional energy source for the Mamaia area, which is currently undergoing expansion. "ABB Romania" was the head entrepreneur of the project.

Apart from big companies on the electricity market, "ABB" has other contracts with smaller, private companies. Peter Simon said that the field of electricity distribution and energy, will not be affected by the crisis in the coming years, as these are activities are regulated, and business plans in this field are made for more than five years in advance, and they have secure and stable revenues, guaranteed because of their rates. Mr. Simon added: "The Romanian energy sector will see major investments in the area of energy production in the coming years, and the transit and distribution grids will have to be ready for that. Thus, the outlook for this segment is particularly good".

Another important segment for "ABB""s business is automation. Peter Simon claims that 2009 will not bring with it spectacular earning on this segment, as automation is strictly tied to the evolution of the real estate market, which is now at a standstill because of transactions. If 2008 has seen a 20% increase in "ABB""s turnover in this sector, in 2009 this sector is likely to stagnate.

For the automation sector, Peter Simon forecasts a development in service, as interest in energy efficiency grows. Since spring 2008, "ABB România" already has a new Service department, for all its five divisions: Energy products, Energy systems, Automation products, Process automation and Robotics. TEXT FOTO: Peter Simon, ABB"s manager for Romania, Bulgaria and Republic of Moldova, estimates that the energy distribution and transit sector will not be affected by the crisis in the coming years.