RALEIGH, N.C., Oct. 18, 2004 — ABB, a leading power and automation technology group, said that it will increase prices on transformers by 12 – 18% based on specific material content. The increase will affect ABB plants as well as Power Partners, Inc in Athens, GA. The increases are the result of significant cost inflation in materials utilized in the manufacture of transformers including carbon steel, electrical steel, copper, aluminum, oil, insulation and transportation.
“2004 has marked the return of material cost inflation that is unlike anything experienced in our industry since the late 1970’s,” stated Gerry Schepers, Senior Vice President of ABB Inc. Customers will be notified separately of the specific impact to them. The increases are effective immediately.
“Throughout the year, we have worked to minimize the impact to customers, passing on a small portion of the costs to customers. With the accelerated inflation, the costs must be passed through to insure ABB’s ability to serve our customers,” said Schepers.
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 103,000 people.