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ilion sells off huge slice of German operation

Rethinking its plans to pull out of Germany after all?

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Networking distributor ilion sold off a sizeable chunk of its German subsidiary. Bonn-based Garmhausen has taken 40 per cent of ilion Deutschland, which has been bought for "a nominal amount" according to a company statement. This is a turnaround for the distributor, which last September stated its intention to withdraw from Switzerland, Germany and Austria. ilion has since shut its Swiss business, although it decided to continue with the Austrian and German subsidiaries. The German business was reviewed, resulting in staff being cut from 45 to 20 and cost and stock levels halved. It is now seen as a workable subsidiary in its streamlined form. In today’s statement the company said: "ilion has always believed that Germany is a strategically important geographic area. The downsized business is now commercially viable and the board expects it to grow profitably in the new partnership with Garmhausen." Ilion also has offices in Belgium, France, the Netherlands, Spain and the UK. Garmhausen will provide technical support for ilion kit in a joint venture called ilion Garmhausen. ®

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