Samsung will spin off its printing division and sell the new subsidiary, dubbed “S-Printing Solution,” to HP, a leading printing-equipment vendor, at US$1.05 billion, in the second half of 2017, announced the company on Nov. 1, citing a decision made by the company’s top management at a meeting on Sept. 12.
Wire services reported that Kim Ki-ho, vice president now heading the printing division, will be in charge of “S-Printing Solution,” adding that even after the takeover by HP, the operation’s products will continue to be sold with Samsung brand in the Korean market. Proceeds from the sale will be used in injection for the Samsung’s core businesses.
Following its spinoff, “S-Printing Solution” will continue its manufacturing in South Korea and China, whose output is moved via a global sales network consisting of 40 dealership bases. It will continue to provide support of printing software. The printing division racked up sales of 2 trillion won (US$1.75 billion) in 2015.
The divestiture plan, however, has sparked protest from employees of the printing division, who have formed an emergency committee for the protection of their work rights. Samsung management has pledged to retain the division’s 6,000 employees entirely, for the time being, but failed short of guaranteeing the working rights for the entire workforce. It, however, has agreed to provide 60 million won (NT$1.71 million) of compensation to every employee.