ABB Group, a leading global provider of industrial automation and electrification solutions, has announced plans to separate its robotics division into an independent, publicly traded company by the second quarter of 2026. This strategic move aims to enhance the focus and value creation for both ABB and the new robotics entity. The decision reflects ABB’s commitment to streamline its operations and reinforce its position in the evolving automation market.
Recent reports indicate that ABB’s decision to spin off its robotics division aligns with similar strategies adopted by other major automation firms seeking to specialize and innovate within their respective sectors. This separation allows the robotics division to concentrate on advancing its technologies and market reach without the constraints of the larger conglomerate structure.
What Drives ABB’s Decision to Spin Off Robotics?
The primary motivation behind ABB’s decision is to optimize value creation for both the parent company and the new robotics division. Martin Wierod, CEO of ABB Group, stated,
“Today, we also announced our plan to spin off the Robotics division as a separately listed company.”
He emphasized that this change will support the growth and operational efficiency of both entities, allowing each to better serve their respective markets.
How Will the Spin-Off Affect ABB’s Operations?
The spinoff will not impact ABB’s Electrification and Motion business areas, which will continue to operate independently. The Machine Automation division will transition to join the Process Automation unit by the first quarter of 2026, enhancing ABB’s capabilities in programmable logic controllers and intelligent pump controls. This realignment is expected to bolster ABB’s overall portfolio and address specific industry demands more effectively.
What Are the Future Prospects for ABB Robotics?
ABB Robotics, poised to become a standalone company, reported revenues of $2.3 billion in 2024 and maintains a strong market position as the global No. 2 in industrial robotics. With a diverse product range including industrial robots, collaborative robot arms, and autonomous mobile robots like the Flexly line, ABB Robotics is well-positioned to leverage advancements in software and artificial intelligence. The division’s focus on innovation and customer retention is expected to drive future growth and competitiveness in the automation sector.
“The board believes listing ABB Robotics as a separate company will optimize both companies’ ability to create customer value, grow and attract talent,” said ABB Chairman Peter Voser. This strategic separation is anticipated to provide ABB Robotics with greater agility and the resources necessary to expand its technological offerings and global footprint.
Looking ahead, ABB Robotics plans to maintain its regional manufacturing hubs in Sweden, China, and the United States, with a recent $20 million investment to expand U.S. production capabilities. This expansion supports ABB Robotics’ commitment to meeting international demand and enhancing its manufacturing infrastructure.
The spin-off is contingent upon shareholder approval and will be executed through a share distribution method, allowing existing ABB Ltd. shareholders to receive shares in the newly listed ABB Robotics entity proportional to their current holdings.
