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New strategic directions for Siemens Industrial Business Unit

Staff -- Control Engineering, 5/1/2000

Batavia, Ill. —Siemens Energy & Automation (SE&A) Inc.'s facility here remains U.S. headquarters for the company's Industrial Control Products Business (ICPB) Unit. However, a business shift is underway at this facility, acquired from Furnas Electric in 1996.

SE&A Batavia is changing from a manufacturing site to a center for marketing, customer service (including training and product demonstration), engineering, product development, and business systems—announced at a press briefing here on Feb. 25. The site will also be the worldwide competence center for some products (3RB10 electronic overload relays, 22-mm pushbuttons, and soft starters). ICPB includes general-purpose drives, motor control centers, contactors, motor starters, and various control panel assemblies. Furnas becomes a brand name.

ICPB manufacturing is moving to other sites, one of them a plant at nearby West Chicago. This 145,00-ft² plant represents a $6.8 million investment since 1996, with a new paint line accounting for over half the total. Modern sheetmetal fabrication equipment is also in place, laid out for best manufacturing efficiency. The plant now employs 362 people. Some manufacturing jobs from Batavia have been eliminated in the reorganization process.

Integration of diverse company facilities that make products on three continents is an overall issue, according to Larry R. Westbrook, vice president and general manager. "Product development across multiple cultures and continents is a challenge because of different market requirements. The idea is to maximize standard parts of products as practicable and adjust for unique differences in the regional marketplace," says Mr. Westbrook.

Strategy to make this happen includes enabling the use of the latest technologies via process redesign, restructuring production to suit core competencies of facilities, and maximizing Siemens' global presence.

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