Company News

ABB revamps engineering business, to take Q4 charge

ZURICH, Dec 20 (Reuters) - Swiss technology group ABB will revamp its engineering, procurement and construction (EPC) business by spinning off and winding down some operations, triggering fourth-quarter charges, it said on Wednesday.

In the Power Grids division, ABB will form a joint venture with SNC-Lavalin for electrical substation EPC projects in which SNC-Lavalin will have the controlling interest.

In the Industrial Automation division, ABB’s oil & gas EPC business will be transferred into a previously announced joint venture controlled by Saudi-based Arkad Engineering and Construction Ltd in a deal now expected to close this month.

In the Robotics and Motion division, ABB is winding down its turnkey full train retrofit business.

“The fourth quarter 2017 results of Power Grids and Robotics and Motion are each expected to be impacted by approximately $75 million on operational EBITA. The transfer of the turnkey oil & gas EPC business into the JV with Arkad is expected to result in a non-operational pre-tax charge to net income of approximately $75 million,” it said. (Reporting by Michael Shields; Editing by Silke Koltrowitz)