Swiss engineering and technology group ABB has announced a significant investment of $280 million in the establishment of a new robotics factory in Sweden. The move is in response to the escalating demand from customers who are relocating production from Asia to circumvent supply chain disruptions.
As supply chain challenges continue to impact global manufacturing, ABB aims to capitalize on the trend of re-shoring production operations. Growing tensions between Washington and Beijing have prompted some manufacturers and other users of robotics to reconsider their manufacturing strategies and shift away from China.
ABB’s CEO, Bjorn Rosengren, acknowledged the emerging re-shoring trend while emphasizing the company’s continued commitment to China. He stated, “There are probably some, especially American, companies who are hesitating about investing in China and maybe doing that in other Asian countries instead.”
While the Chinese economy has experienced a slower-than-expected recovery from the COVID-19 pandemic, Rosengren remained optimistic about the nation’s long-term potential. He commented, “It’s the biggest market for growth; we believe China will be strong even though it will be more China for China and not so much China for the world.”
ABB, a leading player in the global robotics market, intends to maintain its strategic focus on China and has no plans to reduce its investments in the country. The company established a $150 million robot factory in Shanghai last year and expanded its facility in the United States.
The new Swedish robotics factory, located in Vasteras, is scheduled to open in 2026 and is expected to primarily cater to European customers. It will significantly increase ABB’s production capacity, enabling the company to meet the rising demand for robots in Europe, which is projected to grow by 7 percent annually.
Rosengren emphasized that robotics would continue to be a cornerstone of ABB’s operations, with sustained improvements in the division’s performance. Many customers are seeking local supply sources, particularly after experiencing supply chain bottlenecks during the COVID-19 pandemic.
ABB, which competes with prominent players such as Japan’s Fanuc and Chinese-owned Kuka, already supplies robots to leading companies, including BMW, Scania, and Volkswagen.
This substantial investment reflects ABB’s commitment to supporting its customers by enhancing robotics capabilities and contributing to the resilience of global supply chains, Reuters news report said.
