Siemens Automotive Systems will sell its German automotive wires and components business to Leoni AG of Nuremberg.
The business operates from Siemens' cable plant in Brake, near Bremen. It generated sales of about DM75 million (euro 38 million) in fiscal 1999.
In preparation for the sale, Siemens' wires and components businesses were spun off last June as Siemens Automobiltechnik Leitungen GmbH & Co. KG and Siemens Automobiltechnik Komponenten GmbH & Co. KG. About 200 employees are employed in the businesses.
The agreement is subject to approval by German antitrust authorities. No price was given. Leoni also acquired Siemens' non-automotive Special Cables & Wires business last October.
Leoni is a specialist in wiring systems and cables. It had sales of more than DM1.1 billion in 1999.
Other Siemens activities at Brake will not be affected by the sale. These include a development center; a test bench for wiring harnesses; and sales, logistics and process functions for the company's Electrical Distribution Systems business. About 160 employees are involved in these activities.
A spokesman said in-house production of automotive wires and components is not considered strategically important to Siemens Automotive Systems' business portfolio.
Parent company Siemens AG is going through a major upheaval. It is shedding non-core activities and focusing on industrial and engineering operations and high-growth information technology and communications areas where it is looking to make acquisitions.