The spin-off is subject to approval by an extraordinary general meeting of ABB shareholders on September 7. File Image / Pixabay
Technology company ABB is set to spin off its turbocharging division, Accelleron, with a listing in Switzerland.
Accelleron, formerly ABB Turbocharging, will be spun off with a listing on the SIX Swiss Exchange, ABB said in an emailed statement on Thursday.
The division develops, produces and services turbochargers and related components that enhance propulsion and increase fuel efficiency, helping to cut ships' emissions. The firm has an installed base of more than 180,000 turbochargers globally, with about 10,000 deliveries per year.
"Accelleron is considered best-in-class when it comes to reducing fuel consumption and improving the emissions and green profile of its clients' applications," ABB said in the statement.
"The company's outstanding technological competence is increasingly important as pressure grows on its clients to decarbonize, and will remain so, as its turbochargers can also be implemented in alternative and low-carbon fuel applications and drive systems."
Accelleron generated revenues of $756 million in 2021, with an operating margin of 25%.
The spin-off is subject to approval by an extraordinary general meeting of ABB shareholders on September 7, and the listing in Zurich is scheduled for October 3.