News | May 17, 2011

Bosch Packaging Technology Is Set For Further Growth

  • Many innovations presented at Interpack
  • Internationalization is paying off
  • Through organic growth and acquisitions Bosch is strengthening leading position
  • Increased impetus following restructuring
  • Participation in Save Food initiative

Stuttgart/Düsseldorf. Bosch's Packaging Technology division has emerged well from the crisis year of 2009 and is aiming for future growth. "We will grow organically as well as by acquisitions," said Friedbert Klefenz, President of Bosch Packaging Technology, at the Interpack press conference in Düsseldorf. "We started the year with a 16 percent growth in order intake," Klefenz explained and added: "According to our forecast, we will continue to exceed the market trend in the current year. Important drivers for this development are further internationalization, mainly in Asia, as well as an optimized company structure."

Bosch Packaging Technology's most recent year-end figures showed sales of 717 million euros, around two percent above the previous year. "Given the deep scars that the recession has left in our industry, Bosch Packaging Technology has weathered the storm very well," said Klefenz. Despite the economic downturn, sales kept stable. The company's internationalization strategy, which has been pursued over a long period of time, has clearly paid off. The growing business in Asia was able to make up for the negative economic impact of the European and North American markets. 86 percent of Bosch Packaging Technology's sales are outside Germany, of which half are generated in Europe. North America's share is 23 percent and Asia's 20 percent. The importance of the Asian markets has increased significantly during as well as following the crisis. Today, Bosch is the largest supplier of packaging machines in China.

Due to its stable development despite the crisis, Bosch Packaging Technology's number of associates has remained constant. At the turn of the year, the 4,471 people worked for the company throughout the world, with 536 in the emerging markets. In fiscal year 2010, Bosch also invested in the expansion of several of its locations, notably in China, India and Switzerland where a new administration building for around 400 employees was recently opened.

Acquisitions supporting growth
Bosch Packaging Technology is continuing its growth strategy. Only a few weeks ago, the company signed contracts for the takeover of Hüttlin. The two companies develop, manufacture and sell process equipment for the pharmaceutical industry. Hüttlin, based in Schopfheim, Germany, produces specialist drying and granulation equipment, for applications from powder to the production of pharmaceuticals. ”The acquisitions, subject to approval by the antitrust authorities, are ideal additions to our business. Through the wide spectrum of our product portfolio we further extend our leading position in the growth segments of drying and granulation, as well as tablet presses and coaters,” said Klefenz. In the past year, Hüttlin achieved sales of 49 million euros with almost 200 associates, of which 80 are based in Germany and 110 in England.

New business units starting up
At the beginning of April, Bosch Packaging Technology’s new "Liquid Food" business unit, located in Waiblingen, Germany, became operational. The background to this organizational change is the increasing significance of its business in the areas of aseptic machines, clean-fill thermoforming machines and special machinery, for instance for coffee pods. The market for aseptic and clean-fill products has developed well over recent years and has an enormous potential for growth. Aseptic pillow-pack machines including relevant films and closures will be an important pillar of the new business unit.

In a few weeks' time, another new business unit, "Confectionery & Food," will begin operations. Existing activities in the confectionery and food industries will be combined in order to be able to meet customers' requirements even more comprehensively. This forms part of the systematic expansion of the company’s "one-stop shopping" concept.

Sigpack and Paal now under the Bosch umbrella
Since February, the Swiss Sigpack Systems AG in Beringen and the German Paal Verpackungsmaschinen GmbH located in Remshalden have both been trading as Bosch Packaging Systems. "The name change underlines the company's strategic approach to provide one-stop solutions," Klefenz explained. By standardizing the company names, the companies will now benefit from the excellent global reputation of the Bosch brand. However, the product brands of Sigpack and Elematic will continue under the strong Bosch group brand.

Packaged as Promised
At Interpack, Bosch is presenting a variety of innovations and one-stop solutions. With its comprehensive portfolio, the company has reached unprecedented levels of synergy, from consulting and design of comprehensive line concepts and the supply of processing and packaging equipment to servicing and the operation of production lines. The company slogan, "Packaged as Promised," embodies its corporate philosophy: Even for demanding, extensive and long-term projects, Bosch offers its customers the security of competent solutions provided by a reliable partner. Bosch Packaging Technology's presence at this year's Interpack is focusing on the pharmaceutical, confectionery and food sectors. On more than 2,000 square meters of exhibition space, Bosch is showing about 50 exhibits.

Reliable packaging - Invented for Life
This year, Bosch is celebrating the company's foundation 125 years ago as well as Robert Bosch's 150th birthday. It is also an important time for the packaging industry. 150 years ago, the Hesser company, later to become part of the Bosch Group, started producing envelope folding machines and quickly developed into a leading global supplier of packaging machinery. "Our anniversary is cause for more than mere retrospection – it rather connects our past with our future and is a joyous event and as well as an obligation," Klefenz stated. On the one hand, the company has an obligation to continue on its successful path over the coming decades. On the other, Bosch Packaging Technology sees it as its responsibility to ensure sustainability. "In India alone, up to 85 percent of food is still being lost on its way from the farm to the consumer due to inadequate packaging," said Klefenz. "We therefore expressly welcome the Save Food initiative here at Interpack, which is addressing this important issue and devising solutions."

SOURCE: Bosch Packaging Technology