Agfa-Gevaert to Split into Three Independent Businesses
Graphics, Materials, and HealthCare.
Agfa"?s Graphics and HealthCare business groups have been operationally independent since the beginning of 2006. The new Materials group, centered around its film-manufacturing activities, will manufacture film and related products on an exclusive basis for Graphics and HealthCare, as well as for third parties..
"Creating three independent businesses with a streamlined cost structure will give each group the best opportunity and the necessary means to strengthen its leading position in its respective markets. This plan is in the best interest of our customers, employees, and shareholders,"? says Marc Olivie, president and CEO of Agfa-Gevaert.
In a press release, the company reports that, "Agfa Graphics will continue to be a global leader in complete prepress solutions and high-level service, and will expand in industrial inkjet and in emerging markets. It will invest in innovative technologies in inkjet, digital prepress, software, and services. Graphics will secure its competitive position by improving profitability and growing the business and targets to be a 1.9 billion Euro business by 2008."?
Overall, Agfa intends to reduce costs annually by 250 million Euro by 2008 on a worldwide basis -- primarily in general services and in development, production and distribution of the traditional products -- across the three business groups. The structure for each business group will be defined by early 2007; the company reports.