ABB Continues Reorganization

Jan. 5, 2004
Dinesh Paliwal will become U.S. president, as ABB merges six automation business areas into three businesses.

ABB, a global supplier of power and automation technology, has merged its six automation business areas into three businesses effective January 1, 2004. The move continues an evolution that began in late 2002 when the group merged two automation-related divisions and combined eleven business areas into six.

Meanwhile, Group Executive Dinesh C. Paliwal assumed the additional role of ABB’s U.S. president effective Jan. 1, 2004. He succeeds Donald Aiken, who will retire at the end of January.

The organizational changes in Europe meant shuffling several management positions.

Martinus Brandal will head the Process Automation business, which includes control products, petroleum, chemicals and life sciences businesses, as well as paper, minerals, marine and turbocharging units. Teemu Tunkelo, current head of the Control Products business, will serve as technology leader and chief architect for process automation.

Tom Sjökvist will lead the Automation Products business, which merges low voltage products and instruments, drives, motors and power electronics units. Anders Jonsson, current manager of the drives, motors and power electronics area, will promote operational excellence through cost focus, supply chain and sourcing and strategic cost migration.

Bo Elisson will continue to head the ABB robotics, automotive and manufacturing business, which is renamed Manufacturing Automation.

“To appreciate the logic of these new businesses, consider the needs of a major automation technologies user,” says Paliwal. “Just one year ago, our customers had to deal with eleven different ABB organizations to finalize a new strategic relationship.”

ABB’s Automation Technologies division employs about 56,000 and posted 2002 revenues of U.S. $8.5 billion. The ABB Group of companies operates in around 100 countries and employs about 120,000 people.

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