IWKA chairman Hans Fahr has spoken of the need for further consolidation within the food packaging industry to meet the increasingly cost-conscious demands of food producers.
At a recent company press conference Fahr stated that globalisation and consolidation are continuing their advance in the companies of the food industry industry. "This changes the requirements for packaging machinery manufacturers as well. The market is increasingly demanding complete packaging lines that come from a single source," Fahr explained.
One of the leading companies in the market, the German-based company has adapted its activities in packaging technology to meet the changing requirements. The company has built up this division substantially through acquisitions, continued its programme of internationalisation and further strengthened its system capabilities.
Today, the group has sales revenues of €447 million in packaging technology, with about 3,100 employees. Foreign business accounts for 89 per cent of these figures, making IWKA one of the world's leading suppliers of packaging machinery and equipment.
For IWKA the most important customer group in packaging technology is the dairy business, accounting for 30 per cent of incoming orders. Ranked second is the food industry with 29 per cent, followed by pharmaceuticals at 21 per cent and cosmetics at 8 per cent.
"The build-up of the Packaging Technology division is an essential component of our group. This division represents one of IWKA's major strategic foundations," Fahr stressed.
Packaging technology is an interesting market with good earnings potential. With the customers in pharmaceuticals and the food industry, the pressure toward individuality likewise leads to differentiation and variety in the product line. Therefore, Fahr reaffirmed, market growth is less decisive for IWKA than product development and the rate of development - these are the real drivers of growth for the group's business. Here, the signs continue to be favourable.
Time is a decisive factor in competition, according to Fahr. It is a matter of having the product on the market faster. The packaging machinery industry requires fast, flexible solutions. IWKA profits from its consistently decentralised structure. It combines the influence and financial power of a major company with the speed, flexibility and market proximity of the decentralised company units.
The market also demands innovative packaging machinery and equipment with the highest degree of flexibility, availability, quality and economy.
To save time and money, customers increasingly want to obtain complete packaging lines from a single reliable systems partner who is active around the world.