Dallas, Texas 07/23/2015 (Financialstrend) – ABB Ltd (ADR) (NYSE:ABB) has been busy over the past few weeks as it continues to fill its contract portfolio with a number of lucrative deals. Securing a $450 million contract order for linking the Norwegian and British electricity grids just highlights the company’s capacity and capability in the sector
The deal should be a big boost for Chief Executive Officer Ulrich Spiesshofer, who has been spearheading efforts in a bid of turning around the prospects of the loss-making a power systems division. The $450 million order covers the construction of a 730-kilometer subsea power connection for Stattnet SF and National Grid Plc. As part of the deal, ABB Ltd (ADR) (NYSE:ABB) is to construct high-voltage direct current converter stations at both ends of the North Sea Network Link.
The power link between Norway and Britain should help avert concerns over the unreliability nature of renewable energy sources. Britain is to supply any Norway’s energy needs in instances when demand is high for wind turbines to service fully.
Two New Contracts
The $450 million deal comes just days after ABB Ltd (ADR) (NYSE:ABB) received a contract worth $25 million from the electrical transmission system operator RTE France. The deal involves the company supplying the operator with transformer products as well as services for the enhancement of renewable energy supply in the country.
The project is part of France’s government push to add 6,000MW of power from offshore generation by 2020. The deal also affirms the fact that ABB Ltd (ADR) (NYSE:ABB) power systems division that has been generating losses for sometimes is steadily making progress and on course to return to profitability as well as sustainable growth.
The two deals add to a $52 million contract that the Swiss power and Automation Company secured early in the month from Changan Ford Automobile. ABB Ltd (ADR) (NYSE:ABB) is to supply the Chinese company with robots that are to be used to enhance flexibility and efficiency of the company’s new production facility.
