ABB has acquired Siemens' switch socket business in China and established a new company in Shanghai as its core carrier for expanding into the Chinese smart building market.
Swiss industrial giant ABB Group has officially announced that it has completed the acquisition of Siemens' switch socket business in China, and the newly established Shanghai ABB Electrical Technology Co., Ltd. has become its core carrier for expanding into the Chinese smart building market. This acquisition is not only a deep integration of the two giants in the global electrical industry, but also highlights the confidence of foreign investment in the long-term growth of the Chinese market.
Facing the media, Mike Mustapha, Global President of ABB Electric Smart Buildings, did not hide his admiration for the business environment in Shanghai, which has become a key consideration for the new company's "landing" in Shanghai. It is reported that in the future, the integrated new company will continue the dual brand strategy of Siemens+ABB, increase innovation and talent investment, provide one-stop solutions for smart homes, building automation, and energy management, and better and faster meet the needs of the Chinese and even Southeast Asian markets.
For ABB, the newly established Shanghai ABB Electrical Technology Co., Ltd. is a key layout in the field of smart buildings. According to the information revealed at the relevant ceremony on March 6th, the new company will provide users with a complete solution covering switch sockets, home and building automation, terminal distribution, and energy management, operating two brands, ABB and Siemens.
When it comes to development in China, Mustai emphasized that China is very important to ABB. Currently, China is ABB's second-largest market globally and the largest single market for its smart building business. According to data, the current growth rate of China's smart home market is twice the global average, and ABB's integration is clearly aimed at gaining the initiative for a new round of development.
Over the past 30 years, ABB has been deeply involved in the field of energy distribution and building automation in China, but there are also certain shortcomings in retail channels and end consumer markets. Siemens has a great brand influence in China with its star products such as switch sockets and smart door locks, as well as a huge distribution network covering 300 cities and over 10000 stores. This acquisition not only gives ABB access to Siemens' retail channel resources, but also strengthens its market layout and penetration in home electrical terminal products. As Mustai said, "Siemens' switch socket business is highly aligned with ABB's smart building strategy.
It is worth noting that during this integration process, ABB retained the core architecture of the Siemens team, and Wang Feng, the former head of Siemens Home Electrical Business Line, was appointed as the general manager of the new company's business line. Mu Sitai stated that this move aims to maintain the overall culture of the team, in order to better adapt to growth needs and achieve "1+1>2".
When asked how the new company will respond to challenges, Mu Sitai said, "I am more focused on opportunities than challenges.
Indeed, with the rise of digitization, especially artificial intelligence, the smart building industry is facing more opportunities for transformation. At the same time, rapid urbanization, energy transformation, building electrification, decarbonization, and other factors have also outlined new growth points for enterprises.
Currently, a single switch or socket, regardless of the innovative elements attached, is difficult to fully meet users' expectations for the intelligent era. Zou Enchang, Vice President of ABB Smart Building and Head of China Business Unit, emphasized that the biggest advantage of the integrated new company is the integration of ABB's technological advantages in building automation and energy management, as well as Siemens' category matrix in home electrical terminals, covering scenarios such as intelligent lighting, HVAC, security, and photovoltaic energy storage linkage, providing users with a "one-stop" complete solution.
At ABB's Home Electrical Innovation Experience Center located in Changning District, Shanghai, the reporter witnessed the latest display of smart home systems. From the household distribution box to lighting, fresh air, air conditioning, etc., they are all intelligently connected and can be centrally and scene controlled. Not only that, the boundaries of smart homes also extend to devices such as curtains, curtains, and speakers. Users can switch between a series of smart home terminals with just one click through a mobile app, setting them to entertainment, fitness, and other modes.
Beyond the consumer end, this integration will also provide assistance in resolving some of the challenges in urban development through industry markets. For example, in urban renewal, ABB's intelligent technology can effectively improve the electrical safety of old residential areas; In the construction of health and wellness projects, smart home modules such as AI and voice control can bring significant convenience to people with limited mobility, thus better adapting to aging population. In addition, against the backdrop of vigorously promoting "dual carbon" in China, the new company is also highly concerned about the trend of greening. Zou Enchang revealed that ABB will integrate the technological advantages of both sides to provide a richer product portfolio for the entire electricity side and improve building energy efficiency.
ABB has been deeply rooted in China for over 30 years, and has established research and development, marketing, and manufacturing sectors in multiple provinces and cities across the country. After this integration, ABB's decision to settle the new company in Shanghai is also a thoughtful move.
As one of ABB's important bases in China, Shanghai's business services and unique advantages in finance, innovation, industry, and digital transformation provide an excellent development environment for multinational companies, which is conducive to building an ecosystem from research and development to implementation. In fact, ABB previously had multiple core business lines in Shanghai, including ABB Robot Super Factory and Shanghai ABB Motor Co., Ltd. At the same time, the core decision-making team of Siemens switches and sockets was mainly based in Shanghai. In the words of Zou Enchang, "There is naturally a very high degree of compatibility between ABB and Shanghai.
During this integration process, ABB also truly felt the efficiency and convenience of Shanghai's business services. Mu Sitai emphasized that the new company took only 9 months from registration to regular operation, and such high efficiency is very rare.
When it comes to future plans, Wang Feng, who joined ABB from Siemens in the merger and acquisition, stated that they will further increase investment in research and development and talent, maintain their technological leadership, and connect with the local industrial ecosystem with an open attitude, promote cooperation with domestic universities, institutions, and enterprises, and provide better expansion space for smart building and smart home products.
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