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6/21/2018, 1:43 PM (Source: TeleTrader)
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Siemens-0.60%

106.24
Chart for: SIEMENS AG  NA O.N.

Siemens to cut number of industrial divisions

Siemens is planning to reduce the number of industrial divisions in their efforts to reorganize the company, Siemens CEO Joe Kaeser said for Manager Magazin on Thursday. The company plans to merge the current five divisions into three as part of their "Vision2020" strategy which will also set higher margin targets for the new divisions.

The "digital factory" sector will be merged with process industries automation and high voltage networks over land will unite the fossil fuel plant business. The conversion is to be implemented on October 1.

This major change is intended to prepare Europe's largest industrial group for a new corporate strategy of loosening central control. The company wants to focus more on "customer proximity, competitiveness, and innovation."

Breaking the News / SS