By Kim Richters

 

Siemens AG plans to split its traffic business Intelligent Traffic Systems from the mobility unit, creating a separately managed company.

The German engineering company hopes to complete the carve-out by the end of fiscal year 2021, Deputy Chief Executive Roland Busch said Thursday at a press conference for annual results.

The business operates in an environment with "mainly medium-sized competitors with flexible structures and low-cost positions" and needs greater freedom to compete long-term, he said.

"As a separate company with a clear focus, ITS can better pursue its growth strategy, shape digitalization in its industry and actively drive market consolidation," Mr. Busch said.

Intelligent Traffic Systems has annual revenue of around 600 million euros ($706.6 million) and around 600 cities as customers. It provides mobility solutions for roads and urban areas.

 

Write to Kim Richters at kim.richters@wsj.com

 

(END) Dow Jones Newswires

November 12, 2020 04:31 ET (09:31 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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