Leading power and automation technologies supplier ABB Ltd. (ABB) recently announced that its venture capital unit, ABB Technology Ventures, will be investing in Persimmon Technologies in Massachusetts. The two companies are coming together to extend research and development (R&D) in the motor component manufacturing industry, especially the new 3D deposition tools.
Prior to ABB, some other investors including Intel Capital, a unit of Intel Corp. (INTC) had invested about $6 million in the previous round of development.
Persimmon, since its inception in 2011, has been focused on the development of hybrid-field motor technology. This technology uses the novel 3D deposition process to manufacture motor components to reduce costs and increase power density. The technology allows the company to cut down on some of the manufacturing processes, thus saving time.
The preliminary version of the motor was tested to produce increased output with improved area for the stationary part of the motor. This motor, while being more efficient, is similar in size and incurs material costs akin to its counterparts.
Apart from this motor technology, the fund will also aid in the further development of Persimmon’s portfolio of vacuum robotics products and a number of new products. This fund will also facilitate the two companies to trade knowledge about the existing industrial motor products of Persimmon.
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. The company is focused on reducing its selling expenses by 3–5% every year by improving the supply management along with an increase in return on investment (:ROI) in sales and R&D expenditure. These new motors will allow ABB to increase its share in the motor components industry while maintaining its expense levels.
A major portion of the Persimmon’s R&D is at present funded by four grants from National Science Foundation. The ongoing commercialization of its promising hybrid-field technology is likely to leverage ABB’s business going forward.
ABB currently holds a Zacks Rank #5 (Strong Sell). However, some other stocks which are worth considering at the moment include Quanta Services, Inc. (PWR) and Enersys Inc. (ENS), both carrying a Zacks Rank #2 (Buy).