Siemens Chief Announces Retirement

Computergram International, Jan 16, 1998

Jurgen Gehrels, chief executive of Siemens Plc, announced his retirement today, ending the reign of what he termed the "bloody Germans" at the top of one of the UK's biggest electrical and electronic engineering companies. The news came alongside the annual results for the group which show that the UK arm of the huge and multifarious Siemens AG is succeeding where many of its European counterparts are struggling.

"The UK was a very dynamic and lively place in 1997," Gehrels said. But after twelve years as chief executive, he is to step down in March to become a non- executive chairman, while the top job is to be filled by Yorkshireman Alan Wood, currently the group managing director. Siemens Plc's revenue grew by 34.5% to 2,019m in the year to September 30, compared to an overall market growth of around 6% in the UK. When Gehrels, took over the reigns in 1986, Siemens Ltd turned over just 200m pounds. Although profits figures were not disclosed, finance director Bernd Euler stated that as a division, Siemens Plc is achieving a return on investment of 19%, well in excess of the group wide target of 15%. Commenting on recent press speculation about the future of the 1bn pound Siemens Microelectronics plant in North Tyneside, Gehrels stated that not only would design of the DRAM chips soon be shifted there, but that the plant was capable of double the production levels originally anticipated, and that it was now a benchmark facility for Siemens worldwide. Although the semiconductor market was tough this year, he said, Siemens was in for the long term. He's convinced that the industry has seen the worst and that a second phase would be built at North Tyneside, serving the company well into the next century.