News on 19 September 2000
Sulzer, the Swiss engineering conglomerate, is to sell the majority of
its operations in order to focus on its technology businesses. Five divisions
are on the market: Sulzer Infra (which includes ISD, the Infrastructure
Services Division), Sulzer Pumps, Sulzer Textil, Sulzer Turbo, Sulzer
Burckhard.
The five businesses account for 14,600 of its 21,170 strong workforce
and SFr3.6bn of the group's SFr5.5bn revenues. Sulzer has identified three
key reasons for its poor performance in recent years: its business portfolio
is too broad; a number of businesses do not have strong strategic market
positions; some businesses operate in cyclical or mature markets with
limited growth.
The restructured Sulzer will focus on medical devices and surface &
materials technology – areas requiring strong technical expertise
with the potential to build innovative brands. The company is looking
for at least a 15% operating margin and will pursue rapid growth through
acquisition.
