Siemens poised to restructure portion of L&A operation
By Jeff O'Neill, Associate Editor -- Modern Materials Handling, 9/8/2005
The Siemens Logistics and Assembly Systems Group (L&A) has commenced the process of restructuring its product and systems business for material flow solutions.
As a first step, the company has announced that effective January 1, 2006, the company’s Distribution & Industry (DI) division will become an autonomous legal entity called Dematic GmbH, says John Raab, vice president of marketing and corporate development for Siemens Logistics & Assembly Systems. Siemens will consolidate the new company under its “Other Operations” Group.
The DI division supplies hardware and service for materials flow applications. The division was the largest under the Logistics & Assembly Systems umbrella. The three other components of that group, Airport Logistics, Postal Automation and Electronics Assembly, will remain in the current Siemens structure.
Rabb explains that due to the failure of the DI division to reach levels of profitability established by Siemens corporate leadership, the restructuring was a necessary step. The move follows two profitable quarters and a third-quarter loss in the company’s current fiscal year.
Additionally, the new company will be open for partnerships. While declining to name those in talks to partner with the DI division or purchase it outright, Rabb did say, however, that interested parties have already contacted the German corporation about the division.
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