ZURICH-BASED ABB Ltd has positioned Malaysia as its regional hub from which to tap Asia’s fast-growing energy sector.

Through its wholly-owned subsidiary ABB Malaysia Sdn Bhd, the multinational corporation has set up a second manufacturing plant in the Sungei Way Industrial Zone in Petaling Jaya, Selangor, to expand its capacity in Malaysia in order to meet demand in the region. The plant deploys the group’s advanced technologies that are developed in Europe and the US.

ABB specialises in power and automation technologies, which enable its industrial customers to improve their efficiency and performance while lowering environmental impact.

Its head of discrete automation, Pekka Titinen, says there are a lot of opportunities in Malaysia, given its economic growth potential that will drive demand for energy and infrastructure.

The company will focus on power transmission and distribution, rail, solar and infrastructure, apart from solidifying its presence in the chemical and oil and gas industries. The latter is enjoying a boom, thanks to Petroliam Nasional Bhd’s (Petronas) five-year, RM300 billion capital expenditure plan.

ABB sees many chances for it to get involved in Petronas’ enhanced oil recovery projects and its refinery and petrochemical integrated development project in Pengerang, Johor.

“Oil and gas is an ABB stronghold. We’ve been very strong in the industry for centuries and the products in our portfolio are fit for it,” says Titinen, adding that the company has had Petronas as a client for several years now, providing different types of products that range from motors and drivers to transformers for the latter’s facilities.

It is worth noting that ABB was recently selected by Bumi Armada Bhd’s subsidiary, Armada Kraken Pte Ltd, to deliver power and automation solutions for the latter’s floating, production, storage and offloading vessel that is destined for the Kraken oilfield in Norway.

ABB also prides itself on its participation in Malaysia’s largest solar power plant in Gemas, Negeri Sembilan, delivering and commissioning key components for the integration of renewable energy at the 10.25mw plant that is owned by Amcorp Power Sdn Bhd, a wholly-owned subsidiary of Amcorp Properties Bhd.

Apart from that, the company also sees growth for its next-generation ACS880 drives, which regulate the performance of electric motors, in the domestic water sector. The electronic device works by controlling the power, frequency and current that motors draw from the grid.

In fact, many water utilities in Malaysia rely on ABB’s drives and motors to maintain reliable raw and treated water supply to residents. The company recently received its first order for the ACS880 drives from a water utility in Peninsular Malaysia.

ABB invested RM10 million to open its second factory, which manufactures the ACS880 drives for industrial sectors such as pulp and paper, metal, mining, cement, power, chemical, oil and gas as well as food and beverage.

The new facility will cater for the increasing demand for energy-efficient, motor-driven systems in Southeast Asia and Oceania.

Titinen says the factory marks an important milestone for the company as it will enable it to be close to its customers in the region. “With the help of the factory, we can deliver much faster to our customers in Malaysia and also in our export business. This is not the last opening of what we do in Malaysia. We look forward to be able to scale up our business here to support the Southeast Asian region.”

Early last month, ABB launched its “Next Level” strategy and financial targets for 2015 to 2020, which are aimed at accelerating sustainable value creation within the company.

The new strategy is built around ABB’s three focus areas — profitable growth, relentless execution and business-led collaboration. The company is also planning to drive profitability by shifting its centre of gravity to high-growth markets, enhancing competitiveness and lowering risk in business models.

Also as part of the new strategy, ABB has divided its businesses into three regions of interest — Europe, the Americas and Asia; the Middle East; and Africa.

According to Titinen, this is a simplified structure so that the company can reach out to its existing and prospective customers.

Previously, ABB’s biggest market was Europe but now, it is the rapidly growing Asia and North America.

As the driver of the company’s regional hub in Asia, ABB Malaysia is expected to ride the anticipated strong demand going forward, Titinen says.

This article first appeared in The Edge Malaysia Weekly, on October 13 - 19, 2014.