UK - Engineering firm Invensys is selling the non-production parts of its business to reduce debt and plug a deficit in its pension scheme.
The firm hopes to raise £1.6bn from the sale of the businesses, which include energy management and software companies. The firm’s £3.8bn scheme currently has a deficit of around £400m.
A company spokesman said: “Proceeds raised from asset sales will be used to satisfy the cash requirements of the group, including reduction of indebtedness and funding of pension schemes, as well as the investment required to grow market share in production management and rail systems.”
The actual deficit of the scheme will be revealed on May 29 when the results of its triennial review are due.
The scheme has 6000 active members, 49,000 deferreds and 60,000 pensioners.
Engineering and Employers’ Federation deputy director of employment policy, David Yeandle, stressed that engineering firms had been hit hard in the last five years.
He said: “The crisis engineering firms face in pensions is exacerbated by a difficult economic backdrop.”
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