By 2020, Bosch Packaging Technology says it 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 president Friedbert Klefenz at packaging exhibition interpack 2014 this month in Düsseldorf, Germany.
On the basis of its PA 2020 strategy, the machinery manufacturer aims to continue expanding its business in the established markets, and to grow especially in Asia and Africa.
It also 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, the company’s sales exceeded €1 billion (US$1.4 billion) for the first time.
In fiscal 2013, it increased its sales by 22%, from €914 million (US$1,253.7 million) to €1.1 billion (US$1.5 billion).
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, the company recorded internal growth of 10%.
Growing 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.”
At present, the company generates around 40% of its sales in Europe, 30% in Asia, and 25% 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.”
Major order received in Mexico
Bosch Packaging Technology says the equipment business for the food and confectionary industries developed well.
In 2012, it acquired the largest single order in the company’s history.
This year, the company will be delivering two packaging lines to a biscuit manufacturer in Mexico.
Each line operates with six horizontal filling and sealing machines with fully automatic cartoning that can package more than 17,000 crackers per minute.
Alongside the sale of machinery for dry foods and confectionary, in the coming years Bosch Packaging Technology intends to significantly expand its business in the selected beverages and liquid food segments.
Service business continues to grow
Expecting the scope and nature of the service business to change, Klefenz said the company “offers a growing number of solutions that can be combined with one another in a flexible manner.”
This includes process and packaging machinery, as well as technologies for product handling, automation, and inspection.
“In short, we offer one stop shopping. The customer contacts us once and receives, if desired, a full turnkey solution for their project.”
“This includes not only machinery and equipment, but also the planning and construction of packaging lines, as well as assembly, maintenance, and service.”
