GERMANY – Bosch, a German multinational engineering and electronics company, has made plans to sell its packaging machinery business (PA), especially the pharmaceuticals and food units of the Packaging Technology division to expand growth.

According to the company, the decision was made to ensure it focuses on its resources, remaining as a stable partner for its customers.

With the Bosch Group needing to focus on the transformation ahead, it has not identified any sufficiently relevant synergy effects in terms of business or technology that might offer the division prospects for the future within Bosch.

Therefore, Packaging technology is not part of the group’s core business.

PA is involved in project business relating to specialized areas of the packaging industry.

The company also said it operates in a competitive environment in which the players are small and medium-sized enterprises (SMEs), and who are therefore at a structural advantage.

Bosch is certain that its packaging technology operations need to be put on a different footing that will allow them to react more flexibly to the specific requirements of the packaging machinery market.

The company’s special-purpose machinery manufacturer Robert Bosch Manufacturing Solutions GmbH is a separate entity, and will remain part of the Bosch Group.

“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,” said Dr. Stefan Hartung, the Bosch board of management member responsible for the Energy and Building Technology and Industrial Technology business sectors.

“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,” Hartung added.

It also is the Bosch Group’s strategy to structure its operations competitively. Consequently, it continuously adjusts its business fields, and it is in this context that this decision has to be seen.

Technologically, as well as because of its novel approaches and the efficient team behind it, Bosch packaging machinery enjoys an excellent reputation in the various industries in which it is employed.

“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. Under new ownership as well, our tried and tested team will continue to provide our customers with excellent manufacturing solutions and services,” said Dr. Stefan König, chairman of the managing board of Robert Bosch Packaging Technology GmbH.

“PA has always led a largely independent existence within the Bosch Group, and will in the future be able to respond even better to the requirements of the packaging industry. Our customers will benefit from this.”

From a business perspective, the past two fiscal years were difficult for certain PA units.

Under new management, however, the company added that it has begun to realign, with some initial success.