Schneider Electric relinquishes share

VA Tech Transmission and Distribution (VA Tech T&D), a subsidiary of VA Tech and Schneider Electric, has announced the Transfer of power
transfer of the 40% stake in the high-voltage joint venture held by Schneider Electric.

In October 2000, VA Tech T&D and Schneider Electric signed an agreement whereby each company contributed its high-voltage equipment business (as of Jan 2001) to a jointly owned company, VA Tech Schneider High Voltage. VA Tech T&D and Schneider Electric owned a 60% and 40% stake respectively. The venture was managed by VA Tech T&D.

Included in the original contract was the option for VA Tech to acquire Schneider's 40% share. To strengthen its core business in the high-voltage switchgear sector, VA Tech has chosen to exercise this option.

Klaus Brenner, chairman of the managing board of VA Tech T&D and member of the managing board of VA Tech, said: "The purchase of the 40% share from the joint venture is a further step within the course of our corporate strategy to become one of the leaders in transmission and distribution."

In 2003, the venture achieved sales amounting to EUROS620m, employing 2,600 staff. The purchase price has not been revealed by either company.