Samsung Electro-Mechanics will spin off its power supply, tuner, and electronic shelf label system units, following a decision to discontinue the hard disk drive motor business last month.
This is part of the company's strategy to focus on core business portfolios while discarding non-essential businesses. The business units to go independent accounted for about 600 billion won in sales out of the 7-trillion-won sales revenue last year.
The Samsung Group company said on July 14 that it would separate the units producing power supplies, tuners, and electronic shelf label systems in the form of an employee-owned corporation. All their assets and workers will be transferred to the newly established corporation by August 31, with vice president for the digital module unit Jeon Sung-ho to take the helm of the new entity.
The total number of employees subject to personnel change within the three units is 2,200. Samsung Electro-Mechanics will grant severance pays to the workers. The company will complete its restructuring effort it has begun last year with the latest spin-offs. It has no plan for further closure or divestment.
