VDL Groep considers acquisition of the activities of Siemens Hengelo
VDL Groep intends to acquire the activities of Siemens Hengelo. The industrial family firm with its head office in Eindhoven has signed a declaration of intent with Siemens Netherlands in this respect. However, before the acquisition can take place, the outcome of the due diligence must be positive, and the works councils, trade unions and the Dutch Competition Authority must give their consent. VDL expects to know whether the deal will be finalised in the last quarter of 2018. In the coming period, in which various negotiations will be started, the parties will not make any further announcements.
The Siemens Hengelo workforce has been informed about the declaration today. Siemens Hengelo has approximately 470 permanent employees. Long-term work guarantees with Siemens and ASML are part of the deal. This means that 400 employees will in any case keep jobs for four years if the proposed acquisition goes ahead. The plant will initially prioritise continued delivery of Siemens' order book for up to a year after the acquisition.
Turbine and compressor assembly
After the one-year transition period, the largest group of employees will continue to assemble gas turbine driven and electrically driven compressors and produce parts to be delivered to Siemens. Another sizeable group of employees will carry out engineering activities for ASML and other VDL customers in the high-tech cluster of VDL's Enabling Technologies Group. For a year after the acquisition, 400 employees will in any case be able to keep their jobs. “We intend to keep everyone, i.e. all of the approximately 470 employees, in work,” says VDL Groep Chairman Willem van der Leegte. “Of course we are going to try to do our best to find new work, such as different product/market combinations, for the remaining approximately 70 employees. Another possibility is to give them jobs elsewhere in the VDL organisation.”
Willem van der Leegte: “We must take several important steps in the coming period, but if everything pans out as we hope, it will be fantastic to be able to retain this much expertise in Dutch the high-tech manufacturing industry. The combination of high-quality expertise on the one hand, and robotisation and automation on the other hand will enable VDL to continue to seize new opportunities to expand our industrial activities, also in the Netherlands.”
In addition to helping to keep jobs in the Netherlands, VDL regards the envisaged acquisition of the activities of Siemens Hengelo as a means to make innovative and high-grade products and to raise the level of collaboration with its leading partners Siemens and ASML. VDL also wishes, in addition to our leading role in smart mobility, to utilise the knowledge of the employees in Hengelo to play an even broader role in the energy transition – the substitution of fossil fuels for sustainable energy sources.
Hans Winters, CEO Siemens Netherlands:
“This declaration of intent is an important step towards a new future perspective for our employees in the Twente region. Responsible employership was a key factor for Siemens in this process. The proposed acquisition includes long-term job guarantees for the vast majority of our employees. I am confident that our well-trained and qualified employees will have a bright future at VDL and that they will make a positive contribution to the success of VDL and for her partners ASML and Siemens.”
Peter Wennink, CEO ASML:
“We were pleased to have been informed of our partner VDL's intention. We have given long-term job guarantee that will support the proposed acquisition. The retention of high-quality jobs in the technological industry is a priority and we therefore also hope that the details of the acquisition will be finalised soon so that the engineers and technicians can quickly work in our ecosystem.”