The power and automation tech company ABB will invest USD20 million in Russia for constructing a manufacturing facility within the Lipetsk SEZ (special economic zone). The building process will commence in 2014, and the manufacturing of low-voltage modules is expected to start as early as in 2015.

According to Anatoliy Popov, who heads ABB’s Russian operations, the company’s executives are delighted to begin the production of automation enclosures and distribution boards in Russia. The company has determined that there is a strong demand for high-quality electrical modules in Russia, where 60 percent of the modules installed are considered obsolete, particularly in housing. The site of the manufacturing facility will be located 450 kilometers to the south east of Moscow. According to Mr. Popov, company executives are thankful to regional and local officials for their assistance.

The new facility will be the sixth manufacturing plant for ABB in Russia. The company’s other factories are located in Moscow, Yekaterinburg, and Cheboksary. The company has over 1,300 workers within its Russian branch, and its orders last year totaled USD660 million.