ABB to acquire AB Rotech to expand automotive welding solutions
9 July 2018
ABB is to acquire AB Rotech, a privately-owned company headquartered in Bursa, Turkey, with nearly 20 years of extensive experience in robotic welding solutions and services for the automotive industry.
The expertise of AB Rotech’s engineering team covers the entire robotics welding lifecycle, from design and commissioning to electrical engineering and customer service. The parties agreed to not disclose the value of the acquisition. The acquisition is subject to regulatory clearance and is expected to close later this year.
The acquisition will boost ABB’s robotic welding solutions offering and capability for all tiers in this growing automotive segment. According to the International Federation of Robotics, the automotive segment remains the world’s largest robotics market with a record 21 percent growth in 2017. Turkey’s production of cars and commercial vehicles is anticipated to grow faster than its Gross Domestic Product due to the country’s increasing export business focus.
“This acquisition strengthens our position as partner of choice for automotive OEMs and Tier 1 suppliers in Turkey and beyond. It further strengthens our leading robotic solutions and customer intimacy, which is a clear competitive differentiator of ABB” said Per Vegard Nerseth, Managing Director of Robotics for ABB. “This acquisition is also fully aligned with ABB’s strategy of close solution based collaboration with our customers, wherever they call home.”
AB Rotech has been an ABB system integrator under ABB’s Authorized Value Provider program and has grown its business to become a well-established national robot integrator in the automotive sector.
Located close to one of the largest Turkish automotive hubs, AB Rotech brings leading solutions competence and resources in robot welding, including arc-, spot-, and laser welding and, in addition, machining and tooling capabilities. At closing, AB Rotech will become part of the Robotics business of ABB’s Robotics and Motion division and a new regional application center focusing on welding solutions for the automotive industry in Turkey and South Eastern Europe.
Omer Sanda, CEO of AB Rotech, added, “This is the perfect time and ABB is the perfect partner for us to further advance our expansion into the regional automotive industry. This deal will allow us to grow substantially through access to ABB’s regional footprint and its strong account management programs.”
Together with ABB’s already established European automotive regional application centers for robotic welding solutions in Gothenburg, Sweden and Prague, Czech Republic, AB Rotech will help provide enhanced coverage across the entire European region.