ABB said it will undertake restructuring activities within its North American transformer business unit.
Several North American operations will be affected by the changes. The Guelph, Canada, facility will be closed. The St. Louis facility will expand to serve a large portion of the repair business from Guelph. The Jefferson City, Miss., operation will expand to serve a portion of the lower range of the liquid substation product line currently manufactured in the South Boston, Va., facility.
“The decision to close the Guelph operation comes as the conclusion to many years of effort to return the operation to profitability. Over the past 12 months, in particular, the Canadian Auto Workers, the management team and our customers have all worked to turn Guelph around. Unfortunately, the business outlook is that Guelph will only continue to lose money,” said Gerry Schepers, senior vice president for ABB Transformers. The Guelph, Ontario operation is expected to lose 15 million CAD in 2005.
“The restructuring plan in North America emphasizes the strategy to improve performance throughout ABB transformer operations. These actions, including the expansions in St. Louis and Jefferson City are clear examples of this emphasis,” Schepers said.