New strategic directions for Siemens Industrial Business Unit

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 trainin...

05/01/2000


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-ftliminated 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.