Siemens poised to restructure portion of L&A operation

By Staff -- Modern Materials Handling, 10/1/2005

Siemens has started the process of separating part of its Logistics & Assembly Systems Group (L&A) into an autonomous legal entity which is expected to be named Dematic GmbH.

The new business will consist of the former Distribution & Industry (DI) Division at L&A. Customers of the DI Division include Coca-Cola and Dell computers, among others, according to John Raab, vice president of marketing and corporate development for Siemens L&A. He explains that due to the failure of the division to reach levels of profitability established by Siemens corporate leadership, the restructuring was a necessary step—despite two profitable quarters preceding a third-quarter loss.

The DI Division supplies Siemens hardware and service for materials flow applications. The Division was the largest entity under the L&A umbrella that previously included Airport Logistics, Postal Automation and Electronics Assembly.

Raab declines to name those who may be in talks to either partner with Siemens on the DI Division or purchase it outright. However, he did say that companies have contacted the German corporation inquiring about the restructuring.