ABB wins US$ 112-million order for China's Three Gorges project.

ZURICH, Switzerland--(BUSINESS WIRE)--Sept. 14, 1999--

ABB, the global technology and engineering company, has been awarded a contract to deliver advanced high-voltage switchgear for the Three Gorges hydro power station in China. The US$ 112-million contract - the third order ABB has won for this major power infrastructure project - was awarded by the China Yangtze Three Gorges Project Development Corporation. Construction is scheduled to begin in the year 2001 and to be completed in 2004.

Under the terms of the contract, ABB will deliver 500-kilovolt gas-insulated switchgear (GIS) for an electrical substation located at the dam site. The GIS design allows the substation to be significantly smaller than conventional installations, while its high reliability and efficiency will help increase the power available from the Three Gorges hydro plant.

ABB will share technology with two Chinese partners. About 25 percent of the equipment will be produced in China in cooperation with Shenyang High Voltage Switchgear and Xian High Voltage Switchgear.

The order is ABB's third for the Three Gorges hydro power project. In August 1997, ABB won a US$ 250-million order to deliver eight 700-megawatt hydro generators to the project. In April of this year, ABB won an order valued at more than US$ 340 million to supply two converter stations for a 3,000-megawatt high-voltage direct current (HVDC) power link between Three Gorges and the coastal province of Jiangsu and Shanghai area.

ABB continues to develop its business in other parts of China as well. Recent orders include the complete electrical installation at one of the largest paper mills in Asia, located at Dagang, near Nanjing. ABB also announced last week the formation of its 22nd joint venture in China, a plant in Zhongshan to build power transfromers for the Chinese and export markets.

"We have positioned ourselves for growth in the important Chinese market with our strong local presence - over 5,000 people and more than 20 joint ventures," said ABB President and CEO, Gran Lindahl. "We intend to continue to support the economic development of China by delivering the best technology available and by growing our local business even further."

ABB (http://www.abb.com) is a globalized technology and engineering company serving customers in power transmission and distribution; automation; oil, gas, and petrochemicals; industrial products and contracting; and in financial services. Power generation customers are served by the joint venture ABB ALSTOM POWER. The ABB Group employs about 175,000 people in more than 100 countries.