Business/economy

Business development is encouraging Double-digit growth for Bosch Packaging Technology Three acquisitions in the food sector

  • Sales rise by 10.2 percent in 2015 to reach 1.3 billion euros
  • Order intake is 14.5 percent higher than 2015
  • Executive board expects moderate growth for fiscal 2016
  • Complete lines and Industry 4.0 solutions are strategic areas of growth
Waiblingen, Germany – Bosch Packaging Technology increased its sales from 1.18 billion euros in 2014 to 1.3 billion in 2015, representing nominal sales growth of 10.2 percent (3.1 percent when adjusted for currency effects). This puts the machine manufacturer – one of the leading providers of processing and packaging technology solutions – ahead of its competitors. According to industry association VDMA, the German manufacturers were able to achieve nominal sales growth of just 2.8 percent on average. Order intake at the Bosch division also rose over the same period, increasing by 14.5 percent in nominal terms from 1.23 to 1.4 billion euros. Adjusted for currency effects, this corresponds to an increase of 7.2 percent. As of the end of the year, Bosch Packaging Technology employed some 6,200 associates at more than 30 locations worldwide. “We are satisfied with our double-digit rise in sales, particularly given the modest growth of the sector as a whole. In 2015, we were again able to increase our market share,” summarizes Friedbert Klefenz, president of Bosch Packaging Technology. He anticipates moderate growth for fiscal 2016.

Strongest growth in the Asia-Pacific region
Sales in Europe declined slightly in 2015, ultimately accounting for 37 percent of total sales. In North America, sales grew by almost 18 percent – remarkable given the generally stagnant situation in the machine manufacturing market. Overall, North America now accounts for 27 percent of total sales. Latin America saw sales growth of almost 25 percent. At the continental level, Bosch achieved its greatest growth – somewhat above 27 percent – in Asia-Pacific and Africa. In total, Bosch Packaging Technology generated some 90 percent of its sales outside Germany in 2015. Emerging markets are thereby playing an increasingly important role.

Acquisition of three companies in the food sector
Part of Bosch Packaging Technology's growth strategy is to strengthen its position through strategic acquisitions. In addition to founding a joint venture with the Indian company Klenzaids in 2015 (focus on pharmaceuticals), last year the company acquired three further enterprises in food: Osgood Industries Inc. in Oldsmar, Florida at the end of May 2015 and, in December, the two sister companies Kliklok-Woodman Corporation, headquartered in Decatur, Georgia (U.S.), and Kliklok International Ltd. based in Bristol, England. Bosch Packaging Technology is thereby continuing to expand its position in the pharma, food, and confectionery sectors and, above all, strengthens its expertise as a complete solution provider. The companies acquired in 2015 have not been consolidated on the balance sheet for that year.

Moderate growth expected in 2016
The overall rather modest start to 2016 coupled with the high volume of orders from last year leads Klefenz to anticipate moderate single-digit growth for the current fiscal year. To drive growth, Bosch Packaging Technology plans to further expand its line and system competence and develop solutions for the connected production of the future.

Complete solutions from a single source
At Bosch Packaging Technology, a key topic for the future remains line and system competence. Here, Bosch not only views itself as n a provider of the entire production line, from processing technology to the finished packaged product, including services. Instead, the company is taking the approach a step further and looking to turnkey projects, which it sees as offering great potential, especially outside Europe. In these projects, Bosch assumes responsibility for everything from planning of material and personnel, building technology, and cleanrooms to the production facilities themselves, thereby providing customers with complete solutions from a single source. Projects have already been successfully implemented with customers from the pharmaceutical industry in Latin America, the Middle East, and Russia.

Industry 4.0: applying the Bosch Group`s know-how to target industries
Industry 4.0 is another driver of growth. The modern factory is smart and connected, linking traditional manufacturing with sensors, software, and services. Bosch Packaging Technology works with its customers on pilot projects aimed at developing needs-oriented solutions. In doing so, the company can draw on the Bosch Group's many years of experience. “Whenever it is a question of connectivity, we benefit from the Bosch Group's expertise as a leading user and leading provider in this area. We will be launching a whole range of pilot projects in 2016 in order to tailor Bosch's existing software solutions to the needs of our customers in our target industries pharmaceuticals and food,” says Klefenz. One such solution already employed by customers all over the world is Bosch's Track & Trace software.

For instance, to give one example: in 2015, Bosch Packaging Technology and Hikma Pharmaceuticals in Jordan and Saudi Arabia implemented Track & Trace projects for pharmaceuticals. Using Bosch technology, the company prints and verifies up to 400 cartons per minute, and is capable of printing serial numbers, 1D and 2D codes, batch data, and expiry dates on the cartons. Bosch's new software ensures that the software and machines within the process are reliably connected. The various packaging lines can then be monitored from a central office. Thanks to the solution, Hikma is also able to export the data to an external database, for instance that of a regulatory authority. In 2016, other customers in the U.S., the UK, and Austria will be equipping their production facilities with Track & Trace systems made by Bosch.

Contact person for press inquiries:
Christin Pönisch, Phone: +49 711 811-58502
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  • May 24, 2016
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Localization strategy pays off In China, too: Bosch sees connectivity as basis for growth China is second-largest market for Bosch Group

  • Nominal sales growth of 19 percent to 11.1 billion euros
  • “Internet Plus” initiative is driving connectivity market in China
  • Bosch invested more than 750 million euros in China in 2015
  • Industry 4.0 already reality at eight Bosch locations in China
  • Bosch to take on 2,500 additional software engineers in China in 2016
Shanghai, China – In 2015, Bosch increased its sales in China to 11.1 billion euros. Despite a less dynamic market environment, the supplier of technology and services achieved a nominal sales growth of some 19 percent. Adjusted for currency effects, sales were up slightly in local currency. Sales in China almost doubled as a result of the full acquisition of the former fifty-fifty joint ventures BSH Hausgeräte GmbH and Robert Bosch Automotive Steering GmbH. This makes the country the second-largest market for the Bosch Group after Germany. Over the past three years, China’s share of total Bosch Group sales has increased from nine to 16 percent.

Bosch expects a positive performance in China also for 2016 and sees especially strong potential in the area of connectivity. “The Chinese market continues to offer us a wide range of business opportunities. The market for the internet of things (IoT) is also growing rapidly in China,” said Peter Tyroller, the member of the board of management of Robert Bosch GmbH responsible for Asia Pacific at the local annual press conference in Shanghai. He added that this is above all thanks to the “Internet Plus” initiative for integrating the internet into traditional industries – a major element of the Chinese government’s 13th Five-Year Plan, which aims to make China a greener, more open, more innovative, and more sustainable economy. “Over the coming years, we expect China to see strong growth in demand for quality products as well as for connected solutions and services. Bosch is well positioned for this,” Tyroller said.

“Local for local” in connectivity as well
Bosch has been present in China since 1909 and is committed to localization there. “Our ‘local for local’ strategy in China is paying off, as we can see from our sustained business success in the country,” Tyroller said. This relies on expanding local manufacturing as well as research and development. “We invested more than 750 million euros in China in 2015, and we are budgeting a similar sum for 2016,” he continued. For example, Bosch will open a new plant in Wuhu this year for its Car Multimedia division. Tyroller also sees localization as a recipe for success with connectivity. This is why the Bosch subsidiaries Bosch Software Innovations, Bosch Sensortec, and Bosch Connected Devices and Solutions have been present in the local market for several years. When it comes to connectivity, Bosch also relies on alliances with local partners such as Tencent, one of the biggest Chinese internet companies. This collaboration will enable local use of the mySPIN smartphone integration solution. What is more, a team of research associates in China is developing IoT solutions that are tailored to the local market.

Increased competitiveness in China thanks to Industry 4.0
It is above all in connected industry that Bosch sees huge potential in China. “We expect that the use of intelligent and connected solutions in manufacturing will play an increasingly important role in China,” Tyroller said. The key driver for this is the “Made in China 2025” initiative, which is part of the country’s “Internet Plus” action plan. In China, too, Bosch is pursuing a two-pronged strategy in the area of Industry 4.0: As a leading supplier, the company offers a range of solutions for the Chinese market in the areas of powertrain technology and automation as well as sensor technology and software. And as a leading user of Industry 4.0, Bosch is already operating eight pilot projects at its Chinese manufacturing locations in Suzhou, Shanghai, Wuxi, Changsha, Nanjing, Beijing, Changzhou, and Xi’an. In logistics and inventory, for instance, RFID (radio frequency identification) tags track the route workpieces take through the factory, while reading stations are able to pinpoint the position of the transport crates at any time. It is easy to see what work steps blanks are gradually progressing through and when the products will most likely be finished. That data, in turn, can be used to determine when they will be packaged, shipped, and installed. In the Bosch plant in Suzhou, this has already cut the time needed for inventory by 97 percent, or 440 man-hours.

Bosch is a sought-after software employer in China as well
Connectivity also plays an important role in the search for new talents. In 2015, 30 percent of the 5,000 Bosch researchers and developers in China were working in software development. They will be joined by another 2,500 associates in 2016. Bosch now employs some 55,000 associates in China – 2,000 more than one year ago. This makes the company’s headcount in China the biggest outside Germany.

Asia Pacific as a success story for Bosch
Bosch’s success story in Asia Pacific goes back more than a century. In the past five years alone, the company has achieved average sales growth in the region of some ten percent and invested a total of four billion euros. With a 27 percent share of total sales revenue, Asia Pacific remains an important pillar of growth for the Bosch Group. In 2015, its sales in the region rose 17 percent (2.8 percent after adjusting for exchange-rate effects) to 19.2 billion euros. Today, Bosch has 104,000 associates in 18 countries across the region: in Australia, New Zealand, Bangladesh, China, India, Japan, South Korea, Sri Lanka, and Taiwan, as well as in the ASEAN member states Indonesia, Malaysia, the Philippines, Cambodia, Laos, Myanmar, Singapore, Thailand, and Vietnam.

Contact person for press inquiries:
Agnes Grill, phone: +49 711 811-38140
Melita Delic, phone: +49 711 811-48617
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  • May 12, 2016
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New office in Tehran Back to the Gulf state: Bosch restarts business in Iran Dynamic economic growth expected for the region

  • First Bosch products sold in 1924
  • Bosch focusing on reestablishing contact with former partners and customers
  • Wide range of solutions for modernizing infrastructure and vehicle fleet
Tehran, Iran/Istanbul, Turkey – The Bosch Group is opening a new regional presence in Tehran, the capital of Iran. By doing so, Bosch intends to tap into one of the most promising growth markets in the Middle East in the years ahead. All business sectors of the supplier of technology and services will operate in Iran. By the end of the year, Bosch will employ around 50 associates there. Through its regional presence, the company is breathing new life into a long-standing connection to Iran. Bosch began selling its products in the country in 1924. “We are delighted to be back in Iran. In our quest to pick up speed quickly, we are benefiting first and foremost from reestablishing contact with former local partners and customers,” says Uwe Raschke, the Bosch board of management member responsible for Europe, Middle East and Africa. “The country’s potential is tremendous. We expect to see the Iranian economy grow by just under five percent this year. The medium term is also highly promising.”

More than half of the nearly 80 million inhabitants are under 25 years old and the population is also highly educated. Just over 20 percent of the country’s population lives in the Tehran area, a dynamic economic region with a rapidly developing IT infrastructure. In the years ahead, the Iranian government plans to invest more than 40 billion U.S. dollars in local infrastructure, such as in expanding airports, rail networks, and energy supply. “We can support the country’s modernization process with a wide range of products and solutions, including mechanical engineering applications, solutions for connecting infrastructure and energy and building technology, as well as innovative household appliances and power tools,” Raschke said.

Mobility solutions for growing automotive market
Bosch will also be present in Iran with its wide range of products and solutions from the Mobility Solutions business sector. Bosch sees great potential in Iran’s growing vehicle market: this year, more than one million vehicles are expected to be produced locally, some nine percent more than last year. The country’s outdated fleet also means that the need for investment is high, especially in the commercial-vehicle segment. Many trucks have already been on Iran’s roads for 40 years or more.

Strong growth in the Middle East
In addition to its liaison office in Iran, Bosch has also recently opened a sales office in Lahore, Pakistan’s second-largest city. The activities in Iran and Pakistan as well as in 14 further countries in the Middle East will be coordinated by the regional subsidiary in Turkey. In 2015, the company generated sales of 1.9 billion euros in the region, including Turkey, corresponding to a considerable increase compared to 2014. The company generated sales of nearly 1.5 billion euros in Turkey itself last year and employs 16,600 associates. “Turkey plays a prominent role in our growth strategy in the Middle East,” Raschke said. Within a period of two years (2015 and 2016), the company is investing around half a billion euros, above all in expanding local manufacturing and engineering. Bosch also opened a new regional headquarters in Istanbul in 2015.

Contact persons for press inquiries:
Trix Böhne, phone: +49 711 811-6831
Melita Delic, phone: +49 711 811-6831
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  • May 09, 2016
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Creative solutions from Lund: Bosch opens innovation incubator in Sweden Software expertise and start-up spirit

  • Bosch strengthens regional presence in Sweden: 50 engineers to start
  • Mutual inspiration and creativity at highly innovative location
  • Cross-domain collaboration enables synergies and lays foundation for new ideas
Lund, Sweden – Bosch is now also developing connected solutions in the Swedish city of Lund. The company's first engineering location in Scandinavia already has 50 Bosch experts on board. They are working on new software and hardware in areas such as vehicle connectivity, automotive security systems, and motorized two-wheelers. In addition, they are developing cross-domain solutions for connecting mobility with, for example, energy and building technology over the IoT. By bringing together development activities for a number of different areas at a single location, Bosch hopes to facilitate mutual inspiration. “We are systematically driving forward the development of connected, cross-domain solutions over the IoT with the aim of making life more secure and convenient,” said Dr. Dirk Hoheisel, a member of the board of management of Robert Bosch GmbH. “To this end, we're focusing on cross-divisional collaboration that enables synergies and creates the basis for new ideas and creative solutions.”

Located some 20 kilometers from Malmö, Lund was not chosen by chance: “Sweden is on the global vanguard when it comes to fields of research including information and communications technology. This is exactly the kind of environment we want for our new engineering center,” Hoheisel said. “We're pinning our hopes on Lund's talented software and IT experts.” Sweden's status as a highly innovative economic power mirrors Bosch's own traditionally strong position in research and development (2015: R&D investment totaling 6.4 billion euros, or 9 percent of sales). The country regularly appears near the top of international innovation rankings. On the World Intellectual Property Organization's Global Innovation Index 2015, for example, it occupies third place.

Concentration of innovative strength and entrepreneurial spirit
Bosch's new engineering center is located on one level of an office building in Lund's Ideon Science Park. There, around 120,000 square meters of floor space serve as a hotbed of innovative strength and entrepreneurship. The approximately 2,700 people employed in the science park include developers working for established companies and start-ups, as well as entrepreneurs. The University of Lund borders the park directly. Incubators and regular conferences foster and create synergies both among different areas of business and with the university. The focus is on the service sector, culture, and the creative industries, as well as start-ups and the internet of things.

In addition to being a university town (around a third of the more than 80,000 inhabitants are university students), Lund is also the birthplace of several major technological advancements for the connected world, including Bluetooth technology and biometric fingerprint scanners. “Thanks to our cross-domain expertise in connectivity, Bosch is extremely well-positioned to benefit from this. Our prospects are excellent for making history one day in Lund as well,” Hoheisel said. Along with expertise in the areas of sensors, software, and services, the company has outstanding hardware competence. In addition, Bosch can connect different domains with each other, such as smart homes, smart cities, connected mobility, and Industry 4.0. With its own recently-launched IoT cloud, Bosch now also possesses the necessary infrastructure. This offers the company new perspectives not only in its traditional areas of business, but also in completely new fields of activity.

Bosch in Sweden
Bosch has been present in Sweden since 1904. All four Bosch business sectors – Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology – are active in the country. The company employs just under 1,500 associates at five major locations in the country, including two plants. In Mellansel, the Bosch Rexroth subsidiary produces drive and control technology, while in Tranas the Thermotechnology division manufactures heat pumps. In 2015, the company generated domestic sales of some 950 million euros.

Press contacts for Bosch's activities in Sweden:
Trix Böhne
Phone: +49 711 811-6831

Inger Rosen,
Telefon: +46 8 750-1644

Press contact for Bosch's mobility solutions activities:
Stephan Kraus,
Phone +49 711 811-6286
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  • May 02, 2016
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