November 22, 2024

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[THE INVESTOR] Samsung Electronics on Nov. 1 announced a spin-off of its printer business division that is expected to be merged with US printer and PC maker HP Inc. next year.

The US$1.05 billion deal was publicized in September. HP aims to strengthen its leadership position in the inkjet printer market, while Samsung secures cash by selling off a less profitable business amid the ongoing business restructuring. 

The new entity, named S-PrintingSolution, will be operated until the latter half of next year when HP acquires the whole stake.

Even after the acquisition, all the HP inkjet products will be sold under the Samsung brand name in Korea.

The division owns a research base in Suwon, Gyeonggi Province, a production plant in China and some 50 sales operations globally, with some 6,000 people being hired.

HP agreed to hire all the employees, including some 2,000 engineers in Korea. But the company has not yet reached an agreement with employees.

While HP says there will be no involuntary layoffs in Korea, suggesting their employment will be guaranteed for five years after acquisition, the workers are asking to be hired through the retirement age together with incentives and lump-sum payouts.

By Lee Ji-yoon (jylee@heraldcorp.com)