Robots to make robots at ABB's new $ 150 million factory in China

ZURICH (Reuters) – Robots will make robots at a new ABB (ABBN.S) factory in China, which the Swiss engineering group said on Saturday it plans to build for $ 150 million in Shanghai as it defends its place as the country's largest maker of industrial robots.

The factory, located near ABB's China robotics campus, is operating from the end of 2020 and will produce robots for China as well as for export elsewhere in Asia. China is ABB's No. 2 market after the United States.

"ABB Chief Executive Ulrich Spiesshofer said:" The future of ABB is a vital center for advanced technology leadership.

With the expansion, ABB is banking on Chinese robots defying concerns over trade tensions with the United States, and parts requiring automated manufacturing and robots.

China is expanding its workforce by increasing automation. In 2017, it was nearly 138,000 units, ABB said.

ABB's new 75,000-square-foot factory will use software meant to allow people and robots to work safely in close proximity, the company said, adding its YuMi robots – designed to work side-by-side with people – will also be deployed on many ABB robot.

Rival Kuka (KU2G.DE), taken over in 2016 by China's Midea (000333.SZ) two years ago, has been expanding in the country, by building a robot park in Shunde near Hong Kong.

ABB, whose industrial robots are used, among other things, to build automobiles, will build robots for numerous industries at the Shanghai factory, a spokesman said.

It did not give a new employee count for the factory, but said it will boost robotics employment that now sits at more than 2,000 ABB workers in China.