Siemens AG confirmed reports that it plans to separate the Large Drives Applications product line from its Energy and Automation unit, a step preliminary to spinning-off the business. The product line includes industrial motors, drives, and combined systems rated from 200 kW up to 35 MW, for manufacturing operations, ships, and locomotives.
Siemens has been strategically emphasizing software, factory automation, and digital technologies in its recent decisions. In September 2020, the group spun-off its Gas and Power business, now known as Siemens Energy. In 2018, it spun off the medical device business now known as Siemens Healthineers.
"LDA is one of the leading players in the market and in a strong position overall and has performed very well in recent months," according to a Siemens spokesman. "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."
Siemens provided no information on the financial status of the product line, nor any schedule for the separation or eventual spin-off.
It noted that about 7,000 employees will be affected by the decision, of whom about 2,200 are in Germany.