Bosch to Shed Pharma and Food Packaging Machinery UnitsBosch to Shed Pharma and Food Packaging Machinery Units
July 3, 2018
German technology firm Bosch Group plans to sell its pharmaceuticals and food packaging machinery (PA) business units from the company’s Packaging Technology division as the company looks to hone its efforts on digitization and other potential growth areas.
“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,” Dr. Stefan Hartung, a member of Bosch’s board of management in charge of the Energy and Building Technology and Industrial Technology businesses, said in a statement.
A June 29 press release said the decision was made because the businesses only serve a narrow band of the packaging industry and the space is highly competitive. Other equipment makers serving the same market, primarily small and medium-sized enterprises (SME), have a “structural advantage” that allows them to operate with greater flexibility, according to the company.
“Both PA and Bosch will benefit from this decision. A reorganized 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,” said Hartung.
The German company said it placed new management in charge of its PA business two turbulent fiscal years, which have positioned its food and pharmaceuticals units for growth. Some 6100 workers are employed by Bosch’s Packaging Technology division. Bosch will retain its specialty machinery manufacturing unit, Robert Bosch Manufacturing Solutions GmbH.
Further updates on the divestment will be issued by Bosch as developments occur.
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