Daewoo Telecom has unveiled at least a large part of its long-awaited restructuring plan, although there is still doubt on some key issues, with computer manufacturing and automobile equipment taking center stage. A company statement said senior management is to be slashed by 50% through an early retirement program and spin-offs as part of a massive reorganization which aims to see profits of $180m from a turnover of $3bn by the 2001/2 financial year.
The statement also said a previously-reported deal to sell Daewoo Telecom’s telecommunications equipment manufacturing division for $350m to US-based Laves Investment Inc will be wrapped up soon. No further details were provided of the US firm, which was an unknown entity in telecoms circles when the deal was announced last month.
Daewoo Telecom, Korea’s largest PC exporter and one of the top three in the domestic market, will beef up its PC manufacturing department to start mass production of integrated PC models and a new range of internet-oriented products, according to the statement. PC production capacity is scheduled to reach 3.5 million units within two years, while production will also concentrate on next-generation products including auto video screens, web phones, smart phones and internet devices.
The automobile parts division, which became part of Daewoo Telecom by merging other Daewoo Group companies Daewoo Precision Industries, Keangnam Enterprises and KORAM Plastic Co into it, will concentrate on the development of high-tech products and existing profitable lines such as automatic gearboxes, the company said. However the chassis production business will be sold off.
