Power and automation technology group ABB plans to invest about $20 million to build its first factory in the Lipetsk special economic zone in Russia.

The construction is starting in 2014 and production for low-voltage modules is expected to begin in 2015.

“We are delighted that we will soon start the first in-house production of distribution boards and automation enclosures,” said Anatoliy Popov, head of ABB in Russia. “We see a strong need for high-quality electrical modules in a market where 60% of installed modules are outdated, especially in housing and infrastructure refurbishment.”

The new site will be conveniently located about 450km southeast of Moscow with good material availability and attractive investment conditions.“We appreciated very much the good collaboration we had with the regional administration,” said Popov.

The new factory will be the sixth ABB factory in Russia. Other production sites are located in Moscow, in Cheboksary the capital city of the Chuvashiya Republic, and in Ekaterinburg, the fourth largest city in Russia, which is situated in the Ural region. ABB has a staff of around 1,300 employees in Russia and generated orders of about $660 million in 2012.

ABB supplies power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 145,000 people.