ABB to Invest $280 Million in New Robotics Factory in Sweden

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 comes as a response to the increasing demand from customers who are relocating production from Asia to avoid 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 manufacturers and other users of robotics to reconsider their manufacturing strategies and shift away from China.

While acknowledging this re-shoring trend, ABB’s CEO Bjorn Rosengren emphasized 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.”

ABB, a leading player in the global robotics market, has no plans to reduce its investments in China. The company opened 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 will 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.

According to Rosengren, robotics will continue to be a cornerstone of ABB’s operations, with sustained improvements in the division’s performance. The investment in the new factory reflects ABB’s commitment to supporting its customers by enhancing robotics capabilities and contributing to the resilience of global supply chains.

– Reuters news report