By Ed Frankl
Siemens AG said Monday that it will carve out its large-drives unit as it continues its strategy to refocus the group.
The German industrial and technology company will spin off the activities of its Large Drives Applications division, which makes heavy-duty drive systems for ships, mines and mills, into separate legal entities, a spokesman told Dow Jones Newswires.
"We want to give this business additional entrepreneurial freedom so that it can focus more sharply on its markets and customers," the spokesman said.
The statement confirms news first reported by German financial daily Handelsblatt, which said up to 7,000 workers worldwide could be affected, citing unnamed sources.
Siemens had placed the LDA unit in its Portfolio Companies, a group of businesses it seeks to improve or spin off into independent firms.
Siemens didn't give details of the unit's financial performance, but said LDA is "one of the leading suppliers in the market, in a strong position overall and has performed very well over the past months."
It comes as recently appointed Chief Executive Roland Busch continues to realign the company in an effort to refocus on software and digital technology activities going forward.
In recent years, the Munich-based company has listed several major businesses including Siemens Energy, renewables firm Gamesa and its medical-equipment business Siemens Healthineers.
Write to Ed Frankl at email@example.com
(END) Dow Jones Newswires
October 18, 2021 06:08 ET (10:08 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.