ABB announced its withdrawal from photovoltaic Inverters

On July 9, ABB Switzerland, the former giant of photovoltaic inverters, officially announced on its official website that it would withdraw from the business of photovoltaic inverters.

On July 9, ABB and Fimer S.p.A, an Italian company, announced that they had signed an agreement requiring Fimer to acquire ABB's solar inverters business. The deal will enhance the future prospects of solar inverters and enable ABB to focus its portfolio on other growth markets. The solar inverters business of

ABB has about 800 employees in more than 30 countries, with production and R&D bases in Italy, India and Finland. These include PowerOne solar inverters acquired by ABB Discrete Automation and Sports in 2013. The company provides a comprehensive portfolio of products, systems and services for different types of solar installations. At present, in ABB's electrification business, revenue in 2018 is about $290 million.

ABB expects to charge about $430 million in after-tax non-operating fees in the second quarter of 2019, which will affect its half-year performance in 2019. About 75% of the costs are expressed by cash outflows, and ABB will pay Fimer from the end of the transaction to 2025. In addition, ABB expects the cost of divestiture-related separation to be as high as $40 million starting in the second half of 2019. After the end of the transaction, ABB expects that the pre-tax operating profit margin of electrification business will be positively affected by slightly more than 50 basis points, supporting the business towards the target profit margin corridor of 15-19%.

It is expected to be completed in the first quarter of 2020 and will be subject to certain conditions, including completion of sculpture and prior consultation with employee representatives. According to the statistics of China's photovoltaic industry, the output of ABB photovoltaic inverters ranked fifth in the world in 2018. The top 10 companies in global sales are shown in the table below.

Except for the three enterprises mentioned above, the top ten enterprises in the world are quite controversial. According to Wood Mackenzie's public report, Power Electronics, ABB, Shannon Electric, Goodway, Solar Edge, Ingeteam and Special Electric Transformer rank 4-10, respectively. According to the statistics of China Photovoltaic Industry Association, the shipments of Inverters from Shenzhen Kosta, Ningbo Jinlang, Guruiwat and Zhengtai Electric Appliances are equal to or slightly higher than those from Shangneng Electric and Goodway, which are listed in the top ten enterprises.

In the process of the evolution of global market structure, the competition of inverters enterprises in emerging markets is becoming more and more fierce. ABB used to have the largest market share in India. According to a study by Mercom India Research Company in 2017, ABB's cumulative shipments in India as of the second quarter of 2017 were as high as 5GW, accounting for more than 20% of the Indian market. The withdrawal of ABB will undoubtedly bring more opportunities to the photovoltaic inverters enterprises in China!

Ten years ago, European and American enterprises almost occupied the top ten positions of photovoltaic Inverters by virtue of their advantages in the electric field. Now, one by one, they are gradually withdrawing. Siemens and Schneider have long disappeared in the Chinese market.

In the previous article "Mountain and Emerson Series of Photovoltaic Inverters", two Whampoa Military Academies of Photovoltaic Inverters in China, Emerson of the United States and Sander of Taiwan, were introduced. Today, Emerson Inverter business in the United States has become Shannon Electric!

German SMA Group's SMA companies in China renamed Esquieu after completing their MBO in February this year, and at the same time launched the new LOGO.

Inverter enterprises abroad have been withdrawing from the market and are in the dusk. In contrast, besides entering the top four enterprises, many novice inverters are making their way to the city. Rookies such as Goodway, Gurivat and Jinlang have risen rapidly and exuded vigor.