On Wednesday, Swiss engineering and technology giant ABB (ABBN.S) announced a $280 million robotics plant in Sweden to address rising demand from clients shifting manufacturing from Asia to their home markets.
ABB will develop the new facility in Vasteras, eastern Sweden, where it makes industrial motors, drives, and electric car chargers.
According to ABB, the 2026 factory will have 50% additional manufacturing capacity and 1,300 employees.
“Customer demand and projected market growth drive the investment in our new campus,” ABB CEO Björn Rosengren stated.
According to ABB, companies returning from Asia will propel the European robotics and automation sector to increase 7% per year between 2023 and 2027.
The firm provides BMW, Scania, and Volkswagen with robots, competing with Fanuc Corp (6952.T) and Kuka (KUKAF.PK).
This year, the European Union relaxed state aid regulations to enable national governments to match subsidies under President Joe Biden’s US $369 billion Inflation Reduction Act, encouraging manufacturers.
As Washington and Beijing tensions rise, some corporations are rethinking their manufacturing footprint and moving facilities closer to home.
After COVID-19 supply chain constraints, ABB indicated it wants to provide more locally made goods.
Customers are investing in robotics due to skilled labor shortages.
Sami Atiya, President of ABB’s Robotics and Discrete Automation Business Area, said, “This new Campus is key in supporting our European customers as they accelerate investment in robotics and AI due to industry reshoring, sustainable supply chains, and long-term labor shortages.”
“Our Robotics Campus will help us enhance customer service and enable new and existing sectors like automotive, electronics, logistics, healthcare, e-commerce, and pharmaceuticals to maximize automation.”
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