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ABB Lummus to set up EPC co

M. Somasekhar

NEW DELHI, June 23

ABB Lummus Global Inc (ABB LGI), engaged in process technologies in the refining and petrochemicals sector, will make India its hub for sourcing turnkey projects in the Asian region.

It has decided to form an engineering procurement construction (EPC) company with base in India with 400 technical personnel by the middle of 2001, according to Mr. J.C. Gupta, a senior executive of the company, based in Houston, Texas, US.

The Indian subsidiary will be much larger than the Singapore outfit of ABB Lummus. The company had explored the possibility of taking over Indian companies as well as forming joint ventures, but finally decided to have its own-wholly owned subsidiary, Mr . Gupta said.

To begin with, ABB Lummus is setting up a technology division (LTD) in the Capital, which will become operational in the next 2-3 months, he told Business Line.

The decision to have the EPC company in India was influenced by two important factors - the huge business potential and the large pool of engineering talent in India, Mr. Gupta said. The company has a portfolio of 50 technologies for the oil and petroche micals industries.

The India hub and the talent pool drawn from the country would be leveraged to execute global projects. ``We are looking at a business potential of $20 millions annually from the EPC company,'' he said. The process of selecting engineers is already on, M r. Gupta added.

ABB LGI is a part of the $35-billion ABB Asea Brown Boveri Ltd, the holding company headquartered in Zurich, Switzerland. It is a major licensor of process technologies in the oil and gas sector and is responsible for the building of 50 per cent of the w orld's ethylene plants.