January 2021

n NEWS January 2021 www.drivesncontrols.com 6 ABB HAS ANNOUNCED plans to sell off its Dodge mechanical power transmission division following a strategic review of its portfolio. It is also planning to dispose of its Turbocharging and Power Conversion divisions. Together the three divisions represent about $1.75bn of combined annual income, or about 6% of ABB’s total revenues. Reuters suggests that the three divisions being sold could be worth $3.3-4.4bn, with the Dodge division alone being worth $1.1-1.26bn. ABB acquired the Dodge mechanical power transmission division in 2011 as part of its $4.2bn purchase of Baldor Electric (which had, itself, bought Dodge – along with Reliance Electric motors – from Rockwell Automation for $1.8bn in 2006). The Dodge portfolio includes mounted bearings, enclosed gearing, and power transmission components. In 2019, the business generated revenues worth around $575m, representing about 9% of its ABB’s Motion business income. More than 90% of Dodge sales are in the Americas, and is among the top five suppliers of mounted bearings, enclosed gearing and other components in many markets. ABB is also splitting its Motors and Generators division to create three new divisions – IEC LV motors, Nema motors, and large motors and generators – within its Motion business. The changes will bring ABB’s total number of divisions to 20. In another change, ABB is renaming its Industrial Automation business Process Automation to better reflect its customer base. ABB has also been reviewing its digital strategy under its ABB Ability brand of software-enabled products and systems. It plans to accelerate the expansion of this offering, tailored to specific sectors and applications. It will achieve this by increasing r&d and investments to about 5% of revenues per year. The aim is to drive“higher quality”revenues. ABB will also continue to pursue strategic partnerships in the digital area, as well as bolt-on acquisitions. Speaking at ABB’s Capital Markets Day last month, the company’s CFO, Timo Ihamuotila, revealed that that the company is planning to make at least five small-to-medium size bolt-on acquisitions per year. Mika Kulju, president of the drives division reported that the division had generated revenues of $1.3bn in 2019 and proved to be“highly resilient”in 2020, despite the Covid-19 pandemic. ABB is aiming to raise its share of the $10bn global drives business from 14% in 2020 to at least 15% by 2023 (when it reckons the market will be worth more than $11bn – representing a CAGR of more than 4%). ABB plans to sell its Dodge power transmission business p Make UK , the organisation that represents British manufacturers, has downgraded its 2021 growth forecast for the sector to just 2.7% – down from the 5.1% it was predicting three months ago. The revised forecast follows a survey of 306 manufacturers, conducted by Make UK and the business advisory firm BDO , which reveals that the sector contracted by about 12% during 2020, and that for the third quarter in a row, manufacturers have been cutting back on investments. p The industrial distributor Rubix UK has acquired Matara UK , the Gloucestershire-based supplier of industrial automation, linear motion, pneumatics, aluminium extrusion and actuator products and services. Matara will continue to operate independently but will become part of Rubix UK. Its linear automation component expertise will provide a platform for Rubix to develop its UK mechatronic business. p GreshamWorldwide has acquired the Dorset power electronics and display technology specialist, Relec Electronics , for around $4m with potential performance-related payments of up to $665,000. Gresham plans to combine Relec with its Salisbury- based subsidiary Gresham Power Electronics , which designs and manufactures power electronics for the industrial and naval markets, with the aim of boosting its presence in the UK and Europe, and augmenting its manufacturing base and product lines. The businesses will operate separately and Peter Lappin will remain as Relec’s MD. Relec, founded in 1978, recorded revenues of around $7m in the year to February 2020. p ABB is building a $10m E- mobility Innovation Lab at the Delft University of Technology in the Netherlands to drive its portfolio development, and conduct R&D projects. The 3,600m 2 facility will house up to 120 specialists and strengthen ABB’s collaboration with EV manufacturers. ABB’s EV activities are focussed on the areas of charging, storage and digitalisation. It is also investing $30m in a global centre of excellence and production site for EV charging infrastructure, due to open this year in Italy. p Managers at the Gloucester- based robotics and automation supplier CKF Systems have acquired the business from its co-owners, BryanWheeler and Paul Swift. Wheeler, who founded the company and was previously managing director, has retired. Swift, who was previously operations director, will stay on the board of directors. The new MD is Jamie Quinton. NEWS BRIEFS KELLY BECKER HAS been appointed Schneider Electric’s zone president for the UK and Ireland, succeeding Mike Hughes, who is moving to a global position overseeing Schneider’s Digital Customer Experience, Digital Marketing and Global Sales operations. Schneider has also appointed Mark Yeeles as vice- president of its industrial automation operation in the UK and Ireland. He is taking over fromMartinWalder, who will now oversee automation transformation in Europe. Originally from the US, Becker joined Schneider in 2011 and has held a variety of posts, including vice- president of Power Solutions and Director of Strategy and Business Development North America. Most recently, she was country president for Ireland where she oversaw considerable growth. “I am thrilled at the opportunity to lead the 4,300- strong UK & Ireland team at a time of huge changes and transformation, nationally and globally,”says Becker. She will report to Barbara Frei, executive vice-president of Schneider’s European operations.“The UK & Ireland are important markets with huge opportunities for Schneider Electric,”says Frei. “Having worked closely with Kelly over the past couple of years, I know that she has the experience, professionalism, in-depth knowledge, and passion required to drive our strategy and operational success.” In his new role, Mark Yeeles – who has been Schneider’s industrial segment director for five years, after previously working for ABB, Rockwell, Omron and Perkins – will focus on boosting the uptake of automation software in the UK and Ireland. Becker is Schneider’s new president for UK and Ireland ABB’s Dodge portfolio includes mounted bearings