Bosch confirms plans to sell its packaging machinery division
German-headquartered manufacturer Bosch has unveiled plans to place its packaging machinery division on the market, as it confirmed it would focus on other core areas of its business.
The company said it had carefully considered all its options for its food and pharma segment of equipment known as PA – which includes equipment lines for confectionery and bakery ranges.
In a statement from the firm, it said it was exploring a transformation of its activities and that the packaging division did not have sufficient synergy with its other significant areas of business. As a result, it said this had placed smaller and medium sized competitors at an advantage in reacting flexibly to market changes.
The company said the past two financial years ‘had been difficult for certain sections’ of its packaging division, but it stated that under new management, overall progress had been made to place the segment in a stronger position to meet demand from a growing market. It added that its food unit in particular had strengthened its core areas, and is seeking to expand its market position.
Bosch packaging presently employs around 6,100 staff and it is hoped that they will remain with a new buyer for the division. The company added that its special-purpose machinery manufacturer Robert Bosch Manufacturing Solutions is a separate entity, and will remain part of the Bosch Group.
“This decision will allow Bosch to narrow its focus on issues of importance for its future, such as the transformation of the Bosch Group and its future digitalisation strategy, including the internet of things, and to pool its resources accordingly,” says Dr. Stefan Hartung, the Bosch board of management member responsible for the energy and building technology and industrial technology business sectors.
“Both PA and Bosch will benefit from this decision. A reorganised packaging technology business will be able to adapt more flexibly to the diverse requirements of this typically SME market, while Bosch will be free to focus its attention entirely on the group’s impending profound transformation,” Hartung added, who explained that the business is constantly adjusting its business fields in response to strategic requirements.
According to the company, it remained confident that a buyer could be found for its packaging arm of the business, which has recently won industry awards and is considered among the most innovative within the sector. The company had demonstrated several key lines at last year’s Interpack that held strong interest from the confectionery and bakery sector.
“My colleagues in PA executive management and I are confident of future business success. We’re one of the biggest companies in our industry, and the path we have chosen is clearly the right one. We will stay together as a strong and stable unit. Under new ownership as well, our tried and tested team will continue to provide our customers with excellent manufacturing solutions and services,” added Dr. Stefan König, chairman of the managing board of Robert Bosch Packaging Technology.
“PA has always led a largely independent existence within the Bosch Group, and will in the future be able to respond even better to the requirements of the packaging industry. Our customers will benefit from this.”