BERLIN, Oct 18 (Reuters) - Siemens is preparing 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 a divestiture, Handelsblatt reported on
More than 7000 Siemens employees around the world including
around 2200 in Germany will be affected by the move,
Handelsblatt reported, citing sources at the company.
The unit is part of Siemens' so-called portfolio businesses
- operations which the company wants to either improve or sell
off in the future.
"LDA is one of the leading players in the market and in a
strong position overall and has performed very well in recent
months," a Siemens spokesman said.
"We have now decided to carve out the LDA activities into
separate legal entities. We want to give this business
additional autonomy and entrepreneurial freedom so that it can
focus more sharply on its markets and customers."
The company declined to give financial details of the
business. The spokesman 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 charge at the
Munich-based company in February.
Siemens has focused on factory automation, transportation
and building technology in recent years, and exited sectors such
as medical devices and power generation with the flotation of
Siemens Healthineers and Siemens Energy.
(Reporting by Alexander Huebner; writing by Zuzanna Szymanska
and John Revill; editing by Jason Neely)