German technology manufacturer Vossloh has decided to sell its unprofitable transport division, which produces locomotives and commuter trains.
The company has said it plans to sell the transportation division in whole or in parts by 2017, or to transfer it into a partnership that will no longer be controlled by Vossloh.
This unit of the company is expected to contribute around €500m to group sales in 2014.
With this decision, Vossloh seeks to focus on defined strong-growth segments of the rail infrastructure.
As part of the new strategy, the supervisory board of Vossloh determined to divide the previous rail Infrastructure division into three new business units such as core components, customised modules and lifecycle solutions.
Vossloh CEO Hans Martin Schabert said: "Vossloh is concentrating the future operations on technologically demanding regional growth markets of the rail infrastructure in which we already have good market access or where we have the perspective of being able to achieve this access.
"In addition to the core target markets of Western Europe, China, the US and Russia, additional attractive markets have been defined for intensive development."
Vossloh said these new developments are the result of an extensive strategy development ongoing since June.
The company expects sales revenues in the amount of approximately €1.34bn in the current fiscal year and also confirmed the already-announced EBIT forecast of €150m to €180m.
Image: With the divesting of rail transportation division, Vossloh will be able to focus on its rail infrastructure division. Photo: courtesy of Vossloh.