ABB Plans to Sell Oil Services Division
Thursday, October 24, 2002
ABB announced more cost saving measures and said it plans to sell its oil, gas and petrochemicals division within 12 months. This division employs 650 staff in Aberdeen and Montrose. ABB said it will cut another $800m in costs over the next 18 months and plans to sell its oil and gas division to raise cash to reduce its debt. ABB did not say how many job cuts the $800m in additional savings would involve. The company is reorganizing into three divisions from the five it currently has, leaving it with its Power Technologies, Automation Technologies and the Oil, Gas and Petrochemicals (OGP) businesses. OGP alone employs around 12,000 people and had revenues of $3.5bn in 2001. ABB had already announced the sale of its Building Systems activities for 2003 and an investment portfolio of some $600m will also be sold.