Daimler-Benz and ABB eye Asia

Daimler-Benz and ABB eye Asia

SINGAPORE (AFP): Swiss-Swedish conglomerate Asea Brown Boveri Ltd. and Germany's Daimler-Benz AG, which are to merge their railway activities, hope to compete strongly for work in Asia, an ABB official said yesterday.

Paul Ziegler, head of the ABB Group of Companies Singapore, said here that the merger would give the two companies added strength and technology expertise when they bid for a proposed extension of Singapore's underground railway.

"Regionally, it will continue to bring its expertise to Malaysia and also to Thailand, which is looking to ease Bangkok's traffic situation with the introduction of mass rapid transit systems," Ziegler said in a statement.

He said the new joint-venture company will be in a strong position when it bids for work in the region.

The European Commission on Wednesday gave the go-ahead for the planned merger of the railway activities of the Zurich-based ABB and the Stuttgart-based Daimler-Benz.

The new joint venture, to be named ABB Daimler-Benz Transportation, will be formally established by January 1, 1996.

The company will be the "world's most complete provider of railway systems" with a product range including electric and diesel locomotives, high-speed trains, inter-city and regional trains, trams and underground trains, ABB said.