Electronics giant marks 47th anniversary
By Yoon Sung-won
Samsung Electronics said Tuesday it has established a new subsidiary ― S-Printing Solution ― separating its existing printer business division from the company.
It came as the electronics maker moves to sell its printer business to the world's largest printer maker, Hewlett-Packard (HP), to dispose of less profitable businesses and strengthen core activities.
Kim Ki-ho, who had headed Samsung Electronics' printing business division as an executive vice president, will lead the subsidiary.
"We will strengthen the leadership in the printer industry by escalating expertise in this sector," Kim said. "After the merger, we expect to seek new growth engines through the integration of our product lineup and continuous expansion of investments."
At a directors' meeting on Sept. 12, Samsung Electronics decided to spin off the printer business division as a separate subsidiary and sell 100 percent of its stake, including related assets overseas, to HP. The company said the merger process will be completed by the latter half of next year.
Though it is selling its printer business to HP, Samsung Electronics will maintain the business at home and abroad before the merger process is completed. Even after the merger, HP will keep the Samsung brand in the Korean market. This means the U.S. enterprise will no longer sell its printers under the HP name when the merger is completed.
S-Printing Solution is producing products in Korea and China and has more than 50 sales branch offices around the globe. It posted 2 trillion won in sales last year. The company said it will continue to provide its printing software such as the smart UX center.
After Samsung Electronics decided to sell its printer business, employees formed an emergency planning committee to protest the decision, arguing that it may threaten their job security.
After discussions between labor and management, some 6,000 employees will tentatively continue to work at the Samsung Electronics site. Samsung Electronics also agreed to provide an average of 60 million won per employee as compensation for not guaranteeing their job security.
Meanwhile, Samsung Electronics celebrated its 47th anniversary at its complex in Suwon, Gyeonggi Province, Tuesday.
Some 400 executives, including Samsung Electronics Vice Chairman Kwon Oh-hyun, participated in the event at which many employees were presented with long service awards.
Kwon said: "Samsung Electronics is facing diverse and complex risks that we have not experienced so far and this gave us an opportunity to look back on and start anew. To break through the current situation, it is important for us to check internal systems in all aspects and build a thorough risk-management system."
Samsung heir Lee Jae-yong, who recently joined the company's board of directors, did not appear at the event.
By Yoon Sung-won
Samsung Electronics said Tuesday it has established a new subsidiary ― S-Printing Solution ― separating its existing printer business division from the company.
It came as the electronics maker moves to sell its printer business to the world's largest printer maker, Hewlett-Packard (HP), to dispose of less profitable businesses and strengthen core activities.
Kim Ki-ho, who had headed Samsung Electronics' printing business division as an executive vice president, will lead the subsidiary.
"We will strengthen the leadership in the printer industry by escalating expertise in this sector," Kim said. "After the merger, we expect to seek new growth engines through the integration of our product lineup and continuous expansion of investments."
At a directors' meeting on Sept. 12, Samsung Electronics decided to spin off the printer business division as a separate subsidiary and sell 100 percent of its stake, including related assets overseas, to HP. The company said the merger process will be completed by the latter half of next year.
Though it is selling its printer business to HP, Samsung Electronics will maintain the business at home and abroad before the merger process is completed. Even after the merger, HP will keep the Samsung brand in the Korean market. This means the U.S. enterprise will no longer sell its printers under the HP name when the merger is completed.
S-Printing Solution is producing products in Korea and China and has more than 50 sales branch offices around the globe. It posted 2 trillion won in sales last year. The company said it will continue to provide its printing software such as the smart UX center.
After Samsung Electronics decided to sell its printer business, employees formed an emergency planning committee to protest the decision, arguing that it may threaten their job security.
After discussions between labor and management, some 6,000 employees will tentatively continue to work at the Samsung Electronics site. Samsung Electronics also agreed to provide an average of 60 million won per employee as compensation for not guaranteeing their job security.
Meanwhile, Samsung Electronics celebrated its 47th anniversary at its complex in Suwon, Gyeonggi Province, Tuesday.
Some 400 executives, including Samsung Electronics Vice Chairman Kwon Oh-hyun, participated in the event at which many employees were presented with long service awards.
Kwon said: "Samsung Electronics is facing diverse and complex risks that we have not experienced so far and this gave us an opportunity to look back on and start anew. To break through the current situation, it is important for us to check internal systems in all aspects and build a thorough risk-management system."
Samsung heir Lee Jae-yong, who recently joined the company's board of directors, did not appear at the event.
