Siemens AG is setting up a new business to contain its current motors and drives business, covering low-voltage to high-voltage motors, geared motors, medium-voltage converters and motorized spindles. The wholly owned subsidiary, to be called Innomotics, will be established in Germany by July 1 and the global organization will be in place by October 1, according to Siemens.
The spin-off strategy has been adopted frequently by Siemens in recent three years as it downsizes its industrial portfolio.
Innomotics’ various products will share numerous suppliers, customers, and technologies, according Siemens, which are presently assigned to the Large Drives Applications, Digital Industries, Sykatec, and Weiss Spindeltechnologie business units.
“With its size, its broad portfolio, and our highly motivated people, Innomotics will be a trailblazer in the market and capture a leading competitive position,” according to Michael Reichle, who will be CEO of the new organization. “We’ll profit from the strong growth potential, driven in particular by the sustainability-oriented demand for more efficient electrification and energy consumption in industry and society.”
Siemens forecast that Innomotics will have 14,000 employees worldwide and generate approximately €3 billion in revenue.
