AEG AG, now controlled by Daimler-Benz AG, has finally quashed decade-old speculation that it was about to sell its perenially-troubled Olympiawerke AG office automation subsidiary by announcing creation of an enlarged office automation business around Olympia. The new unit will be called AEG Olympia AG, and as well as the electronic typewriter and office systems manufacturer, will take in a new AEG Olympia System GmbH, which specialises in consultancy and installation of computer networks. The new AEG Olympia starts life on January 1 and will have nearly 10,000 employees and a turnover equivalent to $500m, 12.5% of the AEG total. It has four factories in West Germany, in Berlin, Ulm, Konstanz and Wilhelmshaven, and one in Mexico. The typewriter arm will be by far the biggest element: it had sales of $333m last year, on which it made a modest loss of $6.7m. Olympia claims a European market share for electronic typewriters of 16% to 19%, and 30% of its home West German market. AEG AG also owns the Fort Lauderdale, Florida-based minimaker Modular Computer Systems Inc, ModComp.
