International. ABB, an electrification and automation technology company, announced on May 3 that it has completed the acquisition of Siemens' NEMA low-voltage motor business, a purchase that would have started on August 11 last year.
To understand the significance of this transaction, for which financial terms had not been disclosed, it is necessary to understand that the global NEMA motor industry, approximately 2700 million in size, comprises industrial electric motors that are mainly used in North America.
To put it bluntly, NEMA motors are essential components used to run equipment in industries such as food and beverage, oil and gas, mining and aggregates, and water and wastewater and in applications such as those moving air, liquids and units.
So, the acquisition of this business is part of the profitable growth strategy of the Motion business area. It reinforces ABB's position as a leading manufacturer of NEMA industrial motors and provides an even stronger platform from which ABB can better serve its global customers.
Finally, the line of horizontal and vertical induction motors for severe and general purpose service, a company that employs about 600 people and generated revenues of approximately 63 million dollars in 2021, will change its name to ABB and will be reintroduced to the market during the second quarter of 2023.
