FRANKFURT: Healthineers, Siemens’ medical imaging and diagnostics division, will launch a cost-cutting drive to address modest earnings growth this year as it prepares for a separate listing expected to value it at around 40 billion euros ($49 billion).

The German trains-to-turbines group plans to list a minority of the healthcare business to enable it to fund its own investments and acquisitions as the industry moves towards more personalised care.

Healthineers competes with units of Philips and General Electric and increasingly with a host of smaller technology companies.

GE said on Tuesday it was thinking about “separately traded assets” in any of its units, raising again the prospect of breaking up the conglomerate.

Siemens plans to list its healthcare unit in March, two people close to the matter told Reuters last week. The German industrial conglomerate reiterated on Tuesday the listing was planned for the first half of 2018.

Siemens Healthineers said in a statement on Tuesday: “Structural cost savings initiatives are targeting 240 million euros of cost savings per year with a first full impact visible in 2020, and the company aims to achieve continuous productivity improvements going forward.” The maker of medical gear such as X-ray and MRI machines expects an adjusted operating profit margin of 17-18 per cent for 2018 and comparable revenue growth of 3-4 per cent, it said ahead of an event for analysts and investors.

Reuters