The power technology group said the review was triggered by performance that had been below management expectations, despite substantial investments over the last three years.
The company had invested in product development, capacity expansions and acquisitions in software businesses, to enhance product portfolio of the division.
ABB chief executive Joe Hogan noted that the firm has invested to increase Power Systems’ potential for value creation.
"However, Power Systems has not generated consistent returns. This is not acceptable; therefore we are recalibrating the growth, profitability and cash return ambitions for this division," Hogan added.
ABB intends to shut down low value-added engineering, procurement and construction (EPC) operations in over 10 countries, where the outcomes are below expectation.
