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BenQ to Shut Down Siemens Mobile Phone Biz in Germany
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Deutsche Presse-Agentur
09/28/06 8:48 AM PT
Taiwan-based BenQ has announced that it is planning to shut down the German mobile phone business of electronics giant Siemens, which it recently acquired. BenQ also has decided to end investment in its own German mobile phone offshoot, BenQ Mobile, due to the unit's weak performance in the intensely competitive global mobile phone market.
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German electronics giant Siemens' (NYSE: SI) German mobile phone business could be facing closure following the announcement Thursday by its new owners, Taiwan-based BenQ, that it was planning to apply for the unit's insolvency.
About 3,000 jobs have been placed at risk by the move, which comes one year after the Taiwanese consumer electronics group took over the loss-making Siemens mobile phone operations.
The board of BenQ decided Thursday to end investing in its German mobile phone offshoot, BenQ Mobile, which has also recently turned in a weak performance in the intensely competitive global mobile phone market.
BenQ plans to continue production of its BenQ-Siemens brand mobile phones in Asia, threatening the jobs of 1,400 working in the group's head office in Munich and factories in Germany.
Under last year's deal with Siemens, BenQ said it would guarantee jobs through to the middle of this year.
In July, BenQ said that it planned to cut 10 percent of its German workforce as part of restructuring its operations in the country.
However, since then reports in the German media said that BenQ planned to shut operations in Germany and to slash the salaries of its top-ranking executives.
Earlier this month, BenQ Mobile announced that it was closing production plants in Mexico and Taiwan. |
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