Siemens is repositioning its mechanical drives unit, which serves industries such as wind power, as a standalone business under the Siemens umbrella.
The German company said the new setup will enable the business to “operate more efficiently and flexibly in implementing its growth plans in a competitive environment”.
It added that the mechanical drives’ market is currently characterised by weak growth, increasing competition from Asia and overcapacity.
“To achieve greater room to maneuver and intensify its business-specific orientation, the unit is to be managed in the future as a separate company,” Siemens said.
The company added that it is planning to invest in the business’s locations worldwide and the product portfolio “in order to ensure its continued market and technology leadership”.
The mechanical drives business is part of Siemens’ process industries and drives division with about 6000 employees globally, it said.
Image: Siemens
Siemens rejigs drives unit
Business to be standalone company in order to 'operate more efficiently'
By EBS