Siemens to Carve out Motors Business as New Subsidiary

By Joshua Kirby

German conglomerate Siemens AG is to set up a new company to house its motors and large-drives businesses as it looks to cash in on growing demand for more efficient electrification and energy consumption.

The new company, Innomotics, will combine the group's motors, voltage-converters and motor-spindles activities, which were previously assigned to Siemens's large-drives applications and digital-industries divisions as well as to subsidiaries Sykatec and Weiss Spindeltechnologie.

Innomotics will have some 14,000 employees globally and revenue of some 3 billion euros ($3.17 billion) annually, Siemens said. It will operate as a separate but wholly-owned subsidiary from July 1, with the global carve-out to be largely completed by Oct. 1, Siemens said.

Michael Reichle, who formerly led Siemens's logistics division, will take the helm as chief executive of the new company, Siemens said.

Innomotics "will be a trailblazer in the market and capture a leading competitive position," Mr. Reichle said.

"We'll profit from the strong growth potential driven also, in particular, by the sustainability-oriented demand for more efficient electrification and energy consumption in industry and society," he said.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

March 01, 2023 08:32 ET (13:32 GMT)

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