German-headquartered Bosch has announced plans to sell its packaging division, in part due to the competitive environment in which it operates.
The company said that it has “intensively and thoroughly” considered all strategic options to sell its food and pharmaceuticals segment of equipment known as PA. It has not identified any sufficiently relevant synergy effects in terms of business or technology that might offer the packaging division prospects for the future within the firm.
Bosch drew attention to the competitiveness of the packaging industry “in which the players are small- and medium-sized enterprises, and who are therefore at a structural advantage”.
The company’s special-purpose machinery manufacturer Robert Bosch Manufacturing Solutions GmbH 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,” said Stefan Hartung, the Bosch board of management member responsible for the energy and building technology and industrial technology business sectors.
He added: “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.”
Bosch said that from a business perspective, the past two fiscal years were difficult for certain PA units. Under new management, however, many units are now said to be in a good position to serve the growing market. In the years ahead, the company expects to see increasing demand.
PA currently employs some 6,100 people in its global packaging technology operations. Bosch’s aim is for all its associates and locations to be retained by the eventual buyer.
Stefan König, chairman of the managing board of Robert Bosch Packaging Technology, said: “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.
“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.”
© FoodBev Media Ltd 2024