According to ABB chairman of multinational tech firm, automation will be a major driver for industries in the future, so companies will need both robots and a gamut of related manufacturing technologies.
However, the company plans to invest $150 million to build an advanced robotics factory in Shanghai that will make robots from other robots as announced last month. The plans are expected to begin by the end of 2020 accompanied with research and center to develop pursuing innovations in artificial intelligence (AI).
Investments by ABB’s which is the most recent one in china, comes at a time prospect of developing the world’s second -largest economy appears to decline with the ongoing market fights with America. Though peter Voser ABB’s chairman told CNBC’S Akiko Fujita that the idea to invest in the robotics results from the growing automation needs across industries.
“What will be driving the industries in the future is going to be automation, towards autonomous manufacturing,” Voser said at the Nikkei Global Management Forum in Tokyo. “For that, you need robots, but it’s not just the robot itself as a product — but you need also end-to-end solutions for manufacturing. That’s why we are building this factory.”
According to the company china is considered to be world’s largest robot market. Voser said the factory will carter the Chinese market where the manufacturing sector has a “great need to automate.” Beijing push for made in china 2025 is an ambitious policy that is targeting to locally develop high-end technologies to catch up with united state and Germany considered to be rivals.
ABB’s logo sits on display outside the company’s semi-conductor plant in Lenzburg, Switzerland. China massive population have been employed by its manufacturing capacity in factories that makes good for the rest of the world.
China called on domestic firms to make more robots last summer. This a widespread move toward automation that can have great impact on china’s workforce. World bank said its survey predicted about 77% existing job will be threatened by automation back in 2016. Such a prospect could have serious economic consequences.
On the trade front, Voser said ABB is “less affected by some of the trade discussions” that are ongoing since the company manufactures and sells locally. It produces up to 90% and sell within china. America the number is up to 70%.
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