Siemens Selling Assembly Systems Business To ASM Pacific Technology
July 28 2010 - 6:32PM
Dow Jones News
Siemens AG (SI, SIE.XE) said Thursday it is selling its assembly
systems business to ASM Pacific Technology Ltd. (0522.HK), a unit
of Dutch semiconductor equipment maker ASM International NV
(ASM.AE, ASMI).
Under the terms of deal, Siemens will pay EUR29 million to ASM
Pacific Technology. In exchange, ASM Pacific Technology will
support the loss-making business with guarantees, revolving credit
lines and loans totaling EUR160 million, according to a filing to
the Hong Kong Stock Exchange.
Siemens put its assembly systems business for sale in 2008 and
has so far eliminated 900 jobs.
Currently, Siemens Electronics Assembly Systems, or SEAS, has
1,200 employees, among them 630 in Munich, where the German
industrial conglomerate is headquartered.
ASM Pacific Technology will integrate SEAS as a separate unit
and has also made extensive pledges regarding business locations
and workforce, Siemens said in a statement.
Munich remains the central location for production, testing and
research at SEAS.
Over the long term ASM International intends to concentrate all
of its European research activities in Munich, Siemens also
said.
In Siemens' fiscal year 2009, which ended Sept. 30, SEAS posted
an after-tax loss of EUR151.7 million on sales of EUR190.7
million.
Still, a Siemens spokesman added, the unit's performance has
improved recently. SEAS' net loss shrank to EUR4 million in the
quarter ended June 30 and totaled EUR25 million in the nine months
to the end of June.
-By Archibald Preuschat and Matthias Karpstein, Dow Jones
Newswires; +49 211 13872 18; archibald.preuschat@dowjones.com
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