Bosch Packaging Technology Aims to Keep Strengthening its Leading Position Until 2020

By 2020, Bosch Packaging Technology aims to grow considerably faster than the market, and to further expand its leading position in the realm of process and packaging technology around the world.

“We expect to see fundamental change in the market for packaging machinery. We not only want to react to this change, we also aim to help shape it,” said Friedbert Klefenz, President of Bosch Packaging Technology, during the company's press conference at the Interpack trade show in Düsseldorf. On the basis of its PA 2020 strategy, the manufacturer of special machinery aims to continue expanding its business in the established markets, and to grow especially in Asia and Africa. In addition, the company intends to spur further growth by venturing into new fields of business.

“We are well on our way to realizing our plans,” Klefenz said. Last year, Bosch Packaging Technology's sales exceeded the one-billion euro mark for the first time. In fiscal 2013, the company increased its sales by 22%, from 914 million euro to 1.1 billion euro. This was largely the result of the first-time consolidation of companies such as Hüttlin, Manesty and Eisai Machinery. After adjusting for consolidation effects, growth was 6.4%. Currency effects notwithstanding, Packaging Technology recorded internal growth of 10%. According to VDMA, a trade association, the packaging machinery sector grew 4% in 2013. Including companies that were consolidated for the first time in the year under review, the company employed 5600 associates at more than 30 locations, 12% more than the previous year.

Moving Toward the Next Decade with the PA 2020 Strategy

“We expect to keep up this pace of growth in the coming years as well. By the end of 2015, our annual sales are likely to reach the 1.5 billion euro mark,” said Klefenz. “But our plans also go beyond 2015.” Last year, the company defined its strategy up to the end of this decade with PA 2020. The strategy's central aim is to expand the company's current fields of business and markets and to venture into new ones.

Regional Shift Expected

At present, Bosch Packaging Technology generates around 40% of its sales in Europe, 30% in Asia, and a quarter in North and South America. However, for the coming years, a strong regional shift is expected. “Until the end of this decade, we aim to continue growing strongly in the established markets, such as Europe and North America. At the same time, we will generate far more than a third of our sales in Asia,” said Klefenz. Africa and the Middle East are also gaining significance. “Markets in Europe and the Americas will keep developing continuously. This means that the overall market for packaging machinery will grow. However, in the coming years, there will be a shift in the importance of regional markets,” said Klefenz.
 

Pharma Segment Growing Strongly

The pharma segment is one of the drivers of Bosch Packaging Technology's growth. The company has benefited from the sector's dynamic global development. In the past year, it grew 9%. In total, this field of business accounts for 52% of the company's sales. “This shows that a growing number of people have access to medication. It is also the result of the global growth of the generics business,” said Klefenz. At the same time, more complex substances and the ever-stricter requirements of manufacturers and lawmakers have placed growing demands on the packaging industry. “This calls for major innovative strength,” said Klefenz. In total, Bosch Packaging Technology spent around 4.5% of its sales on research and development in 2013.

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