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Product category: Industrial Drives/Controls
News Release from: Siemens Automation and Drives
Edited by the Engineeringtalk Editorial Team on 05 July 2005

Siemens to acquire Robicon drives
business

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The acquisition of Robicon Corporation will give Siemens added strength in drives technology.

The acquisition of Robicon Corporation will give Siemens added strength in drives technology Headquartered in New Kensington, Pennsylvania, USA, Robicon is a leading manufacturer of medium-voltage convertors for AC motors

The company currently employs around 470 staff worldwide, around 50 of which are based in the UK.

Robicon has a production plant in New Kensington as well as subsidiaries in Shanghai (China), High Wycombe (UK), Sao Paulo (Brazil) and Edmonton (Canada) achieved sales of US $117 million in 2004.

A purchase price of US $184 million was agreed with the trustee, appointed by court as required by Chapter 11 of the American bankruptcy law.

The US district court of Massachusetts in Boston has approved the sale on 30th June 2005.

The transaction has already received antitrust clearance from responsible antitrust authorities.

Drive technology is a strategic business activity of the Siemens Automation and Drives (A and D) Group with high growth potential.

A and D President Helmut Gierse commented: "The planned acquisition of the Robicon activities will enable us to continue our expansion in the field of industrial drives".

"Seen both from a technological and regional viewpoint, this purchase provides an ideal added expansion for us".

"The acquisition will also improve market access to important customers and thus contribute to our efforts to achieve profit oriented growth".

Robicon is active in particular in the key sectors of oil and gas, water/waste water and energy, whereby A and D will obtain additional access to the market for its own products.

The world market for drives has a volume of Eur 25 billion, with an annual growth rate of around 2.5%.

Siemens intends to operate the Robicon activities from its location in New Kensington, Pennsylvania, USA - with worldwide responsibility for development, production and marketing.

The new business will be assigned to the A and D Large Drives Division as a separate subdivision and, from a company law point of view, incorporated into the Regional Company Siemens Energy and Automation, Atlanta, Georgia, USA.

The international subsidiaries of Robicon will be integrated into the existing Siemens regional companies.

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