German engineering group Bosch has announced that it is exiting packaging. Bosch is now looking for a buyer for its packaging machinery business (PA), more specifically, the pharmaceuticals and food units of the Packaging Technology division. The group plans to refocus its energies on the digitalization market, including the internet of things, for example. The aim is for all of the divisions of roughly 6,100 associates in 15 countries to be retained by the new owner and the units will remain a stable partner for its customers.
The company notes that reasons for the decision include a desire to focus its resources on its core business, a lack of business or technology synergies within the group and that small-medium enterprise (SME) rivals are at a structural advantage in the packaging technology market.
Dirk Haushalter, a Bosch press spokesperson, tells FoodIngredientsFirst, “It is important to be clear that all companies and Bosch is no exception, continuously pursue a strategy of keeping themselves competitive. This includes constantly reassessing the market and reacting to changes there. For this reason, Bosch is continuously examining ways of appropriately adjusting its entire portfolio of products and services, as well as the way its units are organized.”
From a business perspective, the past two fiscal years were difficult for certain PA units. Under new management, however, the company says that it has begun to realign, with some initial success. Many units are now in a good position to serve the growing market.
In the years ahead, the company expects to see increasing demand.