Rockwell Automation agrees to purchase Samsung Electronics controller business

Milwaukee, Wis. and Seoul, Korea - Rockwell Automation and Samsung Electronics Company Limited announced April 18 that Rockwell Automation Korea has entered into a definitive agreement to acquire the controller division of Samsung's Mechatronics business located near Seoul, Korea.

04/22/2002


Milwaukee, Wis. and Seoul, Korea - Rockwell Automation and Samsung Electronics Company Limited announced April 18 that Rockwell Automation Korea has entered into a definitive agreement to acquire the controller division of Samsung's Mechatronics business located near Seoul, Korea.

This acquisition will form a new business that will operate using the name Rockwell Samsung Automation. The business will create technologies in the design and development of automation products including PLCs, motion, drives, distributed I/O devices, and software product lines. The company states that it will be positioned as an automation leader in the Korean market and as an Asian-based, world-class product development and manufacturing center. Terms of the transaction, expected to close by the end of the second calendar quarter, were not disclosed.

As part of this transaction, Samsung Electronics will provide Rockwell Samsung Automation with a license to brand and market products with the Samsung name in the Korean market. Samsung Electronics has also agreed to purchase control and other automation products from Rockwell Automation, including those produced by the new company, as preferred products throughout all Samsung Electronics manufacturing operations.

"This acquisition combines the strengths of both companies and enhances our competitive position in the Asian industrial automation industry," said Don H. Davis, chairman and ceo, Rockwell Automation. "The strong brand equity of the Samsung name provides an opportunity to expand Rockwell Automation's existing operations in Korea, and brings expertise to further our design and product development capabilities. This direct business presence, combined with Rockwell Automation's thorough knowledge of control technology and advanced automation practices is the nucleus for our future commercial and operational expansion in the Asia-Pacific region."

"The combination of the controller division of Samsung's Mechatronics business with Rockwell Automation brings together very complementary automation product and service portfolios to create a market-leading range of industrial automation choices for the Korean market," said Mr. Yun Jong-Yong, vice chairman and ceo, Samsung Electronics. "By combining our strong base of development and range of products in Korea with Rockwell Automation's global reach, Korean automation customers will benefit through increased responsiveness and superior worldwide support. Samsung's manufacturing operations will directly benefit from this unique combination of product and service portfolios."

Rockwell Samsung Automation will combine personnel of Rockwell Automation's existing Korean organization with the Samsung Controller business. The company's headquarters will be in Seoul, Korea and the manufacturing and product development facility will be located in the Suwon City area. These operations will report to the Rockwell Automation Controls and Information business group based in Cleveland, Ohio.

Control Engineering Daily News Desk
Gary A. Mintchell, senior editor
gmintchell@cahners.com





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