Siemens plans to split its drive applications business

244
1
Siemens plans to split its drive applications business

BERLIN Reuters - Siemens is preparing for a separation of its large drive applications LDA business, the German engineering and technology company said on Monday confirming media reports.

The separation of the unit, which produces heavy-duty electrical drive systems for ships, mines and rolling mills is the first step to demonetization, Handelsblatt reported on Monday.

More than 7000 Siemens employees in Germany, including around 2200 in the world, will be affected by the move, Handelsblatt reported, citing sources at the company.

The unit is part of Siemens' so-called portfolio business - operations, which the company wants to sell or improve in the future.

LDA is one of the leading players in the market and has a strong position overall, and has performed very well in recent months, a Siemens spokesman said.

We have now decided to separate legal activities out of LDA. We want to give this business additional autonomy and entrepreneurial freedom so that it can concentrate more sharply on its markets and customers. The company declined to provide financial details of the business. The spokesperson also declined to comment on further options for the business, and whether the spin-off was a prelude to finding a partner for LDA or selling the business outright.

The move would be the latest part of the reshaping of Siemens under CEO Roland Busch, who has concentrated on digital and software-based acquisitions since taking over the Munich-based company in February.

In recent years Siemens has concentrated on factory automation, transportation and building technology and exited sectors like medical devices and power generation with the flotation of Siemens Healthineers and Siemens Energy.