Kosme halts packaging, palletising manufacture
Krones subsidiary moves to secure financially stable future
Krones is to end manufacture of lower output packing and palletising equipment by its loss-making Kosme subsidiary in Italy. Kosme’s facility in Roverbella will now focus on its core filling and labelling technologies.
Krones said in a press release: “In order to secure the plant’s future on a sustainably viable financial basis, the product portfolio of Kosme Italy has had to be altered and the capacities correspondingly right-sized.”
The issue was addressed by Krones chairman Volker Kronseder, who wrote in the company’s second quarter report that it had become “evident that we must take measures to cut costs at our subsidiary Kosme in Italy.”
Kronseder noted that negotiations with the unions had started in July and were ongoing, adding that the company was intent on securing the site’s long-term future, even if it meant a reduction in personnel.
Kosme’s first half revenues declined 1.7% to €53.2m, from €54.1m in 2013. The subsidiary also reported a pre-tax loss of €500,000 during the first half, compared to a loss of €100,000 for the same period in 2013.
At the beginning of 2009, Krones increased its holding in Kosme to 100 per cent. Kosme manufactured a complete range of lines rated up to 18,000 containers an hour, including labelling, filling, packaging and conveyor technologies.