The 10,000 sqm factory will be completed by mid 2013 and will employ about 140 people including machine operators and logistics, purchasing, quality and engineering support personnel.
"The new component manufacturing plant will act as a feeder factory for our transformer units in the region" said Bernhard Jucker, head of ABB's Power Products division. "This investment reinforces ABB's continued commitment to Europe and underlines our strong position in the market".
The new factory will manufacture transformer components to support ABB's existing transformer manufacturing facilities in Lodz. These units manufacture power transformers rated up to 300 MVA (megavolt ampere) with voltages up to 500 kV (kilovolts) and oil-filled distribution transformers rated from 30 to 2,300 kVA (kilovolt amperes). Both factories serve the European market, and the power transformer operation also serves other regions.
In addition, ABB has a center in Lodz that delivers prefabricated insulation kits and elements to its power transformer factories in Europe, helping them to reduce cycle times and lower costs.
When the new component factory is completed next year, it will bring the total number of ABB employees in Lodz to about 1,000. This is ABB's third investment in Poland in recent years, following the construction of factories to manufacture electric motors and power electronics, which are also located close to Lodz.