ABB and Niedax Group to Create Joint Venture to Meet Growing Demand for Cable Tray Systems in North America

May 10, 2024

Electrification and automation leader ABB and Niedax Group, a leading global supplier of cable management systems, have entered into an agreement to form a new 50/50 joint venture. The transaction is subject to customary closing conditions. Expected to close and commence operations in Q4 2024, the collaboration will integrate the North American cable tray businesses of ABB’s Installation Products Division and Niedax Group into a new joint venture. The plan is to deliver advanced solutions and services to electrical contractors, distributors and systems integrators across the United States, Canada and Mexico.

Niedax

Demand for cable tray systems has steadily increased and is estimated to be one of the fastest-growing areas of electrical components within North America. Used in electrical systems across a broad range of applications such as electric power distribution, communications and technology, construction, manufacturing and more, cable tray provides structural support and organization for electrical cables, raceways and conductors. As demand for electricity continues to grow, the joint venture will leverage the strengths and resources of ABB and Niedax Group to deliver greater customer value through a comprehensive solution offering, enhanced logistics capabilities, local R&D and production, and specialized services.

“Growth in many of the industries we serve is driving increased demand for cable tray products and services. Partnering with Niedax Group will create new opportunities, accelerate collaboration and product development, and maximize value for our cable tray customers coast-to-coast,” said Khalid Mandri, President, ABB Installation Products Division. “With complementary offerings, advanced manufacturing capabilities, deep industry relationships and a shared focus on high-performance products, establishing this joint venture enables us to work together to pioneer future-ready cable management solutions to support growth in these transitioning industries.”

The planned joint venture will offer ABB Installation Products, T&B® Cable Tray and ExpressTray® Steel Wire Basket Tray product lines, as well as Niedax Group’s MonoSystems®, Canadian Electrical Raceways and other Niedax® product lines. The combined product portfolio of cable management solutions will be extensive, spanning a wide range of configurations, finishes and types of cable and ladder trays, wire baskets, channel and perforated tray, floor systems and boxes, accessories and fittings. Customers will have the ability to customize solutions to meet their needs.

“The intention to form a joint venture represents a significant milestone in our strategy to drive sustainable growth and enhanced customer value,” said Bruno Reufels, CEO of Niedax Group. “By integrating ABB’s extensive expertise in digital technologies and trusted brands and Niedax’s industry-leading cable management systems, we are well-positioned to meet the evolving needs of our customers and bring our combined expertise to emerging opportunities in the North American market.”

ABB’s Installation Products Division and Niedax Group are working to ensure a smooth transition for the more than 200 employees across the U.S. and Canada who will be part of the new organization. The team will include engineering, manufacturing and R&D specialists, and sales and product management experts. The companies aim to build on their combined expertise to expand their existing product portfolio and leverage automated and sustainable manufacturing practices to drive increased efficiency and value within the electrification industry.

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