0406 ABB SP 3-04

1 Motors and drivesSpecial ReportABBR eviewa2 Special ReportABB ReviewA winning formulaABB has found the right formula to be a leading player in thedrives market. DMI a milestone in the development of DC motorsABB s DMI motor range has many advantages including highpower, a wide speed range and small dimensions. ACS50 Sizing up the consumer The new variable-speed microdrive targets new markets like theconsumer the environmentABB produces motors and drives using environmentally friendlyand energy efficient technology. Improving motor efficiencyEnergy efficient motors effect customers costs and therefore theirprofitability and competitiveness. Compact and complete: ABB s industrial drive , ACS800 ABB s ACS800 Industrial drive is an energy saving, compact drivewhich can be connected to almost any control system. Smaller and smarter the future of AC drivesDrives are becoming more intelligent, with better communicationsand are easier to install and control.

2 New roles for permanent magnet technologyABB s permanent magnet technology has found its way intomarine applications and wind power superlativesA new generation of high power fixed speed motors allowselectric drives into markets once dominated by mechanical TrollUsing HVDC Light technology and VHV motors, power issupplied from land to platforms offshore. Service is key to unlocking drives potentialABB delivers high technical competence with a comprehensivelevel of service for products during every lifecycle at your fingertipsThe ACS550 standard drive is the easiest drive on the market toinstall and use, and it has the lowest made!A new advanced production line can manufacture customizedvariable-speed drives in the power range 50 kVA to 610 ReportABB ReviewABB at the wheel of electrical drivetechnologymicroelectronics, software, sensors,industrial communication and materialsscience are making these individualunits smaller and smarter.

3 The overall re-sult is a more complex, technologicallyadvanced, not to mention cost effectivedrive family with a broad range of in-dustrial and consumer use of advanced semiconductorswitches or intelligent power modulesenable the application of control tech-niques that, a decade ago, seemed onlya vision. In the last decade the motorsthemselves have improved in efficiencyby an average of 3 percent. And thejourney doesn t end here. motor anddrive technologies such as high-energypermanent magnets, semiconductorswitched reluctance motors, siliconmicro- motor technology and soft mag-netic materials are developing at arecord pace. In fact, ABB engineers havefurther developed permanent magnetand very high voltage motor technologyto satisfy various customer industry, motors and drives poweringmechanical equipment account for about65 percent of the total electrical energyconsumed.

4 Reducing this figure is there-fore of prime importance when it comesto energy savings. The longer drives andmotors are in operation, the higher thesavings. Over the total running time,more than 97 percent of the total cost ofa drive system is accounted for by itspower consumption and only 3 percentby the capital investment, hence the vitalimportance of high motor years of experience and know-how, ABB is leading the way in thedevelopment of drive technology. Onesuch development has been a radicalnew control technique known as DirectTorque Control (DTC). DTC contributesdirectly to energy efficiency by motorflux optimization. Another striking development affectingdrives is miniaturization. Increasingcomponent integration means circuitboards are becoming smaller, which inturn leads to more cost- and energy-efficient manufacturing. On top of this,environmentally friendly and energy-efficient technologies combined withsound manufacturing processes andincreased recycling of resources con-tributes enormously to the environmen-tal health of our use of ABB AC drives in the speedcontrol of pumps and fans has, in thepast ten years, allowed a worldwideaverage of 81,000 GWh of energy to besaved each year!

5 Drives technology is a field that inspiresengineers to develop better systemswith cutting edge technology. In addi-tion, it contributes to the efficient use ofenergy, which in turn improves theeconomy of our customers. Last but notleast, drives technology supports a sus-tainable development for all of this special report, let ABB drive you through the fascinating world ofdrives and motors. We wish you aninteresting Markus BayeganChief Technology Officer ABB LtdElectrical drives are, quite literally,the driving force behind all automa-tion systems used in industry, com-merce and buildings. They are used in awide range of applications in many in-dustries such as cement, chemical, pulpand paper, metal and oil and gas, andcontribute enormously to increasing theefficiency and reliability of theseprocesses while at the same time im-proving safety and energy entering this market in the early1970 s, ABB has become the world sleading manufacturer of AC variable-speed drives.

6 With an estimated 16 per-cent market share, we have a productrange which is considered the widestand most complete in the industry. Ourmost recent innovation, the ACS50 com-ponent drive , is considered a small rev-olution in terms of size and simplicity,with gigantic performance and overallfunctionality. Its core platform hasenabled us to target new markets likethe consumer industry. A modern electrical drive consists of a controller, a static converter and anelectrical motor . Technologies such asEditorial4 Special ReportABB ReviewA winning formulaWith an estimated 16 percent of the global market, ABB is the number one supplier of variable-speeddrives. The company has a product range that is considered the widest available from any vendor, and areputation for manufacturing products that are reliable, simple and it takes more than just good products to be a leading player and maintain that position in today svariable-speed drives market.

7 It takes creativity and hard work. Customers no longer look just at theproduct, but also at the company supplying it. Key factors considered by customers when selecting adrives company include service levels, total lifecycle costs, availability and expertise. ABB is meeting customer demands in a variety of different ways, from setting up networks of specialiststo educating customers on how to get the most from their TiitinenFactors that make ABBthe number one supplierof variable-speed drives5 Special ReportABB ReviewIn 2002, Europe and North Americaexperienced an overall decrease in thesales of variable-speed drives. In fact, itwas reportedly the worst year ever inboth regions for these products. IMSR esearch reveals that the North Americanmarket for motor drives suffered most,contracting by percent. The Europeanmarket fared slightly better, but also en-countered negative growth during 2002,with an estimated decline of 1 with this depression in the mar-ket, ABB went on to sell more drivesthat year than in 2001!

8 In addition, 2003turned out to be a bumper year withthe company growing more than twiceas fast as the market. Similar growth isexpected during 2004 . So, what fac-tors have enabled ABB to grow in theface of a troubled market? Increasing competitionThe variable-speed drives market isvery fragmented. Many companies nowspecialize in one or another area ofdrives, and some of these have provedto be very competitive. So what effect do these specialist com-panies have on larger ones like ABB?There are those who say that specialistdrives companies are better at capitaliz-ing on the competitive difficulties of theglobal marketplace. They do this bymeeting the needs of the market moreaccurately and by being more flexibleand adaptable. ABB believes it can easily match theknow-how of so-called specialist com-panies. Employing many people doesnot imply know-how goes down, butrather the opposite is true.

9 ABB is a big employer with many specialiststhroughout the is widely thought that specialist drivesmanufacturers allow original equipmentmanufacturers (OEMs) to shop around,enabling them to meet their applicationdemands more precisely. This in turnavoids any dependency on a , ABB strives to make all it s offering, not just drives, competi-1tive. The company believes that if the products more than satisfactorilymeet the requirements, why not buythem from one company. In addition,one-stop shopping has many benefits,including time savings, clear respon-sibilities and reduced partner networksABB drives product portfolio is hugeand continues to grow as new prod-ucts are released. As this portfolioexpands, so too must the of ABB s customers are morewilling than ever to go one-stop shop-ping, but they demand a local pres-ence and faster response times. Withan ever-growing international customerbase, this presents an enormous chal-lenge to ABB.

10 That is why large organizations, likeABB, are very interested in companiesin other countries that are able to offersimilar services at the same professionallevel. In other words, a first-class chan-nel partner network, one with the samelook, feel and level of professionalismis essential to meet the challenges men-tioned previously. ABB now has an alliance of channelpartners that allow the company to mixhigh levels of expertise with proximityto the customer. To further supportthese partners, the company has estab-lished logistics centers as well as a vari-ety of e-tools. In addition, productsdesigned specifically for sale by itschannel partners have been added toABB s drives portfolio. ABB s channel partners are further sup-ported by networks of specialists thatlook after specific market sectors, suchas HVAC, food and beverages, waterand cement. As well as dedicated prod-ucts and services for the end users,these networks bring specialist knowl-edge of their particular of information the biggest rivalABB is aware that some of its competi-tors are very strong, and that a combi-nation of creativity and hard work isessential to keep the company maintain its leading market position,ABB knows it must invest in productdevelopment, manufacturing technolo-gies and service capabilities.