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July 3, 2018updated 23 Jul 2018 8:05am

Bosch plans sale of packaging machinery business

Bosch plans to divest its packaging machinery (PA) business to focus resources on its core business, as part of a transformation strategy.

Bosch plans to divest its packaging machinery business (PA) to focus resources on its core business, as part of a transformation strategy.

The sale will mainly include the pharmaceuticals and food units of the firm’s packaging technology division.

The company stated that the packaging technology division is not its core business and does not offer relevant business or technology synergy effects within the group.

“A reorganised packaging technology business will be able to adapt more flexibly to the diverse requirements of this typically SME market.”

Bosch plans to ensure the sale will not affect the employment of the division’s 6,100 associates in 15 countries, aiming to have them retained by the buyer.

Bosch board of 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 digitalisation strategy, including the internet of things, and to pool its resources accordingly.”

“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 small and medium-sized enterprise (SME) market, while Bosch will be free to focus its attention entirely on the group’s impending profound transformation.”

The company expects the sale to make the division more competitive in the packaging machinery market, which it says is dominated by SMEs.

The planned sale will not include the company’s special-purpose machinery manufacturer Robert Bosch Manufacturing Solutions.

Additionally, Bosch noted that the past two fiscal years were difficult for certain PA units, which were later steered to a ‘good’ position under new management.

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