The division’s order intake reached the record level of €1.23 billion, which is nearly 11% higher than in 2013. Friedbert Klefenz, president of Bosch Packaging Technology, expects to see further substantial growth in sales revenue in 2015.
“The results achieved in the first four months of the current fiscal year give us every reason to be optimistic. Our proximity to customers and markets has enabled us to obtain a higher volume of orders compared with the previous year. This serves as the basis to reach our defined sales targets,” Klefenz said.
The recent acquisition of Osgood Industries, a supplier of food packaging systems in the U.S., and the establishment of a joint venture with Klenzaids, an Indian company specializing in processing, packaging and cleanroom technology for the pharmaceutical industry, will be a contributory factor.
In 2014, Bosch Packaging Technology made moderate progress in the European market, and achieved high double-digit growth in North America. In the free trade zone created by the North American Free Trade Agreement (NAFTA), the company benefited first and foremost from substantial orders placed by its customers in the food industry. Business with manufacturers of pharmaceutical products is also moving forward.
2014 was a year of mixed sentiments as regards the development of Bosch Packaging Technology’s business in Central and South America. On the one hand, the Pharma business unit reported a double-digit increase in sales to pharmaceutical companies in Central America, with further prospects for growth thanks to a major contract. Soon the customer’s new, ultramodern factory will be capable of producing and packaging over 450 liquid and solid pharmaceuticals. On the other hand, sales to customers in the food industry in Central and South America were lower than in 2013. This result is mainly due to the depressed economic situation in these regions.
In 2014, progress was unexpectedly weak in the markets of the Asia-Pacific region, where Bosch Packaging Technology reported lower sales than in 2013. Nonetheless, the outlook for 2015 is positive, not least because the company has developed high-quality products to suit local needs. As a result, the volume of new orders in China has picked up in the first quarter of 2015, despite the slower economy.
Bosch recently strengthened the presence of its Packaging Technology division in India by acquiring a 49-percent equity share in the Indian company Klenzaids. “This investment represents an important step forward in our efforts to gain a stronger foothold in this region,” Klefenz said.
The objective of the Bosch division’s Strategy PA 2020, presented last year, is to increase market share and expand the number of business areas. Although the growth regions of Asia did not develop as well as expected in 2014, Bosch Packaging Technology still aims to generate one third of its sales in this region by the year 2020. At present, Asia accounts for 23% of total sales. In Europe, which is still the division’s largest market, accounting for 43% of total sales, and in North America, which currently accounts for 25% of total sales, the company aims to grow faster than the market.