South Koreaâ€™s Samsung Techwin Co Ltd plans to separate its camera business into an independent entity in a bid to help the loss-making operation make a profit. The new company, tentatively named Samsung Digital Imaging, will be listed in the stock markets separately beginning Feb. 1, 2009.
Market observers say the spin-off could boost the share price of Samsung Techwin, who has other profitable business operations in chip components, aircraft engines and gas turbines. Samsung Techwin is 25.5% owned by Samsung Electronics Co Ltd.
The move could also place Samsungâ€™s camera business in a better position to compete with better-known brands such as Canon, Nikon and Sony, analysts say. Poor sales prospects amid the global downturn have weighed on Samsung Techwin’s camera business, which is also saddled with heavy research and marketing expenses.