Bosch is planning to divest its packaging machinery business (PA), as part of its efforts to focus on its core business.
Image: Bosch plans to sell its packaging machinery business. Photo: courtesy of Robert Bosch GmbH.
The company is now seeking a buyer for its packaging business, specifically the pharmaceuticals and food units of the packaging technology division.
At present, the PA unit has around 6,100 associates across its global packaging technology operations. Bosch is aiming that all of its associates and locations to be retained by the new owner.
Bosch said it has not identified relevant synergy effects in terms of business or technology that suits with division prospects for the future within the group.
Bosch energy and building technology and industrial technology business sectors head and board management member Dr Stefan Hartung said: “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 digitalization strategy, including the internet of things, and to pool its resources accordingly.”
The division, which is not part of the group’s core business, is engaged in project business pertaining to specialized areas of the packaging industry.
Bosch intends to operate in a competitive environment focusing on small and medium-sized enterprises (SMEs), and separating the packaging technology operations will help the unit to work more flexibly to meet the specific requirements of the packaging machinery market.
Bosch also noted that the past two fiscal years were difficult for certain PA units from a business perspective, while multiple other units are in better position to serve the growing market.
The firm’s special-purpose machinery manufacturer Robert Bosch Manufacturing Solutions will operate as a separate entity and will remain part of the group.
Robert Bosch Packaging Technology managing board chairman Dr Stefan König 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.”