The merger of Siebe and BTR, announced on Monday, creates an engineering giant with sales of £9.1bn and 124,000 employees around the world.
About 5,000 jobs will be lost globally, with an estimated 1,000 expected to go out of the 22,000 people employed by both groups in the UK. Included in the figure are head office posts that will be eliminated as the firms relocate to BTR’s London offices.
‘There are no targeted plant closures in the UK,’ Allen Yurko, chief executive officer said. ‘This is a three-year programme, globally focused, not just on the UK. In fact it may be a little tougher on the Americans.’
In the global controls and automation market, the combined company said it will edge into a market leading position, just ahead of Siemens, ABB and Emerson. It claims market leadership in intelligent automation, the controls market, power systems and a range of automotive sealing, vibration and fluid sealing equipment.
Intelligent automation systems for the process and power industries, buildings and rail make up the bulk of the new group’s sales, based on brands that include Foxboro, APV and Wonderware from Siebe, and Worcester and Vogt from BTR. Annual sales from this division amount to an estimated £2.67m.
The new company has no name yet, being referred to as BTR Siebe. The merger will take effect next March.
Both companies will accelerate a shift towards lower cost manufacturing countries. Siebe had 25% of production in low-cost countries, and will move this up to 30% by 2000. BTR is moving from 11 12% of production in low-cost countries to about 15% by the end of the decade.
Sales by destination are similar between the two companies, with about 40% going to the US, and just under 40% to Europe.