St. Louis ABB Facility to ‘Discontinue Production’

ST. LOUIS (KMOX) – ABB announced Monday that it will discontinue production at its St. Louis facility, with more than 100 jobs being eliminated.

ABB is a Swiss-based manufacturer of electrical grid components, and power transformers are made at the company’s facility at 4350 Semple Avenue.

The company said 120 employees at the plant will lose their jobs.

“This staged restructuring is scheduled to begin soon after the announcement with final shutdown of the St. Louis facility by the end of 2018,” said ABB’s U.S. Director of Media Relations Chris Shigas, according to the St. Louis Post-Dispatch.

ABB said production will be shifting to its operations in South Boston and Crystal Springs.

The St. Louis “unit” will “continue to focus on engineering and service activities,” according to a news release.

The eventual number of company-wide job cuts is expected to be balanced out by increased hiring in India, China and Boston, with more than 500 posts being created over the next two years, the Post-Dispatch reports.

The company posted the following news release, in part, to its website:

ABB today announced a strategic realignment of its global transformer manufacturing, engineering and service footprint to enhance competitiveness in a dynamic market environment marked by increasing competition and consolidation in the rail industry. The move is part of the ‘Power Up’ transformation program in ABB’s Power Grids division.

In the United States, ABB will consolidate its power transformers manufacturing footprint by investing in its South Boston and Crystal Springs units and discontinue production at its unit in St. Louis, Missouri, which will continue to focus on engineering and service activities. In addition, ABB will establish new traction transformer manufacturing facilities at its South Boston unit to serve rail industry needs. ABB will also expand its medium and large power transformer factory in Varennes, Canada, to better serve the Canadian market.

“This footprint optimization will enhance competitiveness and strengthen ABB’s global leadership in transformers by better aligning the business to reflect changing market dynamics,” said Claudio Facchin, President of ABB’s Power Grids division. “The realignment is part of our ‘Power Up’ transformation program and ABB’s Next Level strategy.”

ABB’s St. Louis facility was the site of a 2010 workplace shooting where a gunman killed three and wounded five, before killing himself.

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