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    A redeployment plan in the programmable logic controller activity

    Schneider Electric lauches an industrial and commercial redeployment plan in its programmable logic controller activity.

    As announced at the May 6, 1999 Annual Shareholders’ Meeting, Schneider Electric has recently completed a process of refocussing on its core business of electrical power, with its two highly complementary activities of electrical distribution and industrial control and automation.

    The industrial control and automation activity generates more than 15 billion francs in sales and is world leader in industrial control. The second industrial control and automation activity, programmable logic controllers, ranks third worldwide, with 3 billion francs in sales, but its results are quite inadequate.

    This is why Schneider Electric has decided to reinforce the PLC activity by launching a two-part development plan, focused on industrial and commercial issues on the one hand and social issues on the other.

    The objectives of this plan are two-fold: to provide customers with a more comprehensive product and service offering and to make the business more competitive through the significant reduction of costs.

    This project was presented on Tuesday May 11 to the employee representative organizations of the Schneider Automation companies.

    > Commercial issues
    The main priority for the automation activity is to round out and extend its software and equipment product and service offering by making the most of its synergies with other Schneider Electric activities : electrical distribution and particularly industrial control.
    Schneider Electric aims to become the most proactive manufacturer of automation systems, in response to changes in the markeplace and customer needs.

    > Industrial and Social issues
    The company intends to increase the specialization of its plants in Germany, the United States and France, which will lead to around 500 lay-offs (about 160 in France). A redundancy scheme will be proposed to the labor unions and developed in order to deal with the consequences of this refocussing, in line with Schneider Electric’s long-standing social policy in this area.

    Through these measures, Schneider Electric reaffirms that its competencies in the field of automation are and will continue to be an integral part of the Firm’s strategy and that it will do its utmost to ensure the development and competitivity of these activities.