ABB and Philips Join Forces
Recently, ABB Ltd. (ABB) and Koninklijke Philips N.V (PHG) joined forces to provide combined lighting systems and build device control for commercial buildings. This joint effort will reduce the cost of renovation of mid-and-small-sized commercial buildings. Together, the companies intend to offer a solution to control a commercial environment including lighting, blinds, building access and heating, ventilation and air conditioning (:HVAC).
ABB being a leading power and automation technology provider and Philips being the global leader in lighting, have complementary solutions that provide a comprehensive package to systems integrators, commercial building owners, facility managers and the people who work in these buildings.
HVAC and lighting comprise about 70% of the energy consumption in commercial buildings; hence with the introduction of building device control, energy efficiency can be enhanced by approximately 30%. Further, modernization by deploying more energy efficient systems represents a significant opportunity for building managers to save on operational costs.
Additionally, the introduction of the lighting and power solution from ABB and Philips will make it a simpler process to reconfigure spaces. For instance, in a hotel, the solution would enable altering the lighting scene after combining several separate rooms into a large meeting room, just by the click of a button while in a shopping complex, a building manager can simply reconfigure the access, HVAC and lighting when a single unit is split into smaller ones.
Therefore, Philips’ LED lighting combined with ABB’s controls is expected to generate up to 80% energy savings compared with conventional lighting, while providing high quality light for a comfortable and more productive work environment.
Based in Zurich, Switzerland, ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance, while lowering negative impacts on the environment. Amsterdam-based Philips Electronics is one of the world’s largest electronics companies and the biggest in Europe, with sales of €23.3 billion in full year 2013.
ABB currently holds a Zacks Rank #4 (Sell). However, other stocks that are worth considering at the moment are Quanta Services, Inc. (PWR) and Enersys Inc. (ENS), both carry a Zacks Rank #2 (Buy).
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