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ABB's South African Project

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Recently, ABB Ltd. (ABB) received a contract from Sappi Southern Africa for its Electrification and Instrumentation (E&I) and Distributed Control System (:DCS). The order worth $8.6 million is quite large and is part of Sappi’s Project Go Cell.

As per the deal, ABB will be engineering, procuring and supplying equipment for Sappi’s Ngodwana mill in Nelspruit, South Africa, facilitating chemical cellulose production capacity of the mill. Chemical cellulose, of which Sappi is a leading global producer, is used in the production of consumer products such as clothing, plastics, food and pharmaceutical products. In 2007, Sappi Saiccor’s Amakhulu project was successfully implemented by ABB. 

ABB’s Medium Voltage switchgear, Low Voltage MCCs incorporating intelligent motor controls, Profibus intelligent instrumentation, Variable Speed Drives and 800xA control system will boost the mill’s efficiency, leading to a decline in the consumption of energy. 

ABB will team up with Pulp and Paper composite plant experts from South Africa, Finland and Singapore for error free installation and completion of the electrification and automation equipment within Sappi’s expected time limit. The plant production is expected to start in 2013.

ABB Ltd. is a Zurich (Switzerland) based power and automation technology company. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle East and Africa. A major competitor of ABB Ltd. is Siemens AG (SI).

We maintain a Zacks #4 Rank (short-term Sell recommendation) on ABB Ltd.

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