ABB is to acquire AB Rotech, a privately-owned company headquartered in Bursa, Turkey. AB Rotech has about 20 years of experience in robotic welding solutions and services for the automotive industry. The acquisition will boost ABB’s robotic welding solutions for all tiers in the growing automotive segment.
Financial details of the acquisition were not disclosed. The deal is expected to close later in 2018 and is subject to regulatory approval. When it does close, AB Rotech will become part 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.
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.AB Rotech’s engineering team covers the entire robotics welding lifecycle, from design and commissioning to electrical engineering and customer service.
According to the International Federation of Robotics (IFR), the automotive segment remains the world’s largest robotics market with a record 21 percent growth in 2017. The IFR disclosed at Automatica 2018 that 125,200 units were sold in this segment last year.
“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,” says 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 has expertise in robot welding, including arc-, spot-, and laser welding and, in addition, machining and tooling capabilities.
“This is the perfect time and ABB is the perfect partner for us to further advance our expansion into the regional automotive industry,” says Ömer Şanda, CEO of AB Rotech. “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.