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ABB recently announced it has signed an agreement to purchase Siemens’ low voltage NEMA motor business. With manufacturing operations in Guadalajara, Mexico, this acquisition provides a well-regarded product portfolio, a longstanding North American customer base, and an experienced operations, sales, and management team. The business employs around 600 people and generated revenues of approximately $63 million in 2021. Financial terms of the transaction were not disclosed. The transaction is expected to close in the second quarter of 2023.
According to the Department
of Energy (DOE), more than
half of all electrical energy
consumed in the U.S. is used
by electric motors. To address
this, several years ago, the DOE conducted
a technical study as to what
could be done to raise the efficiency
levels of “small” motors. After years
of study and litigation, the Small Motor Rule (SMR) was passed that covers two-digit NEMA frame single- and three-phase ¼ through 3 horsepower
motors in open enclosures.
motors with premium efficiency counterparts presents businesses with a significant opportunity to reduce operating costs. A comparison between premium and standard efficiency motors from 0.25 to 10 horsepower is conducted; comparisons of full-load efficiencies are shown, and estimated payback periods are calculated. Methods for calculating the yearly kilowatt-hour consumption and yearly cost savings of premium efficiency
motors for this horsepower range are also given. The cost advantages of premium efficiency motors are summarized, and relevant examples of real world cost savings are shown.