Krones Group to Cease Digital Container-Decoration Operations by End of 2023
In a strategic move to realign its focus and streamline operations, the Krones Group, a prominent player in the beverage and liquid food industry, has officially declared the cessation of its digital container-decoration business. The decision, slated to take effect by the close of 2023, marks a pivotal shift in the company’s strategic direction and reflects a comprehensive review of its business strategy vis-a-vis the prevailing market dynamics.
Despite the successful deployment and operational success of Dekron GmbH’s DecoType series machines—specialized in digitally decorating containers made of glass, PET, and HDPE—the Krones Group has opted for a deliberate pivot. Dekron GmbH, a subsidiary integral to this digital decoration venture, has played a pivotal role in developing and manufacturing these cutting-edge machines since 2018. The subsidiary also benefited from KIC Krones, another group subsidiary, which supplied the matching UV inks.
This decision does not undermine the accomplishments and technological advancements achieved by Dekron GmbH. On the contrary, it underscores Krones Group’s commitment to adapting its strategies to meet evolving industry demands and navigate the complexities of the current market scenario.
In November, Dekron informed its stakeholders, including staff, customers, suppliers, and business associates, about the forthcoming change in the company’s trajectory. As part of this strategic shift, effective from 2024 onward, all service support required for existing lines will be seamlessly transitioned to the capable hands of Krones AG’s expert service technicians. This ensures a smooth continuity of service and support for customers relying on Dekron’s digital container-decoration solutions.
It’s worth noting that Dekron GmbH’s journey in this domain has been marked by innovation and collaboration. The company successfully synergized Krones’ own development activities with the business operations of Till GmbH, a company in which Krones has held a majority holding since 2014. Till GmbH’s contributions have been instrumental in shaping the landscape of digital container decoration.
As part of the phase-out process, Dekron GmbH will be liquidated, effective December 31, 2023. The facility in Kelkheim, which served as a hub for innovation and production, will be closed down. However, the closure comes with careful consideration and adherence to established protocols. A reconciliation of interests has been negotiated with all members of staff, ensuring a fair and transparent transition for the workforce.
The decision to discontinue the digital container-decoration business reflects Krones Group’s commitment to agility and resilience in the face of industry changes. While bidding farewell to a specific business segment, the company remains steadfast in its commitment to excellence and innovation in other core areas. The move underscores Krones Group’s proactive stance in shaping its trajectory to meet the challenges and opportunities of an ever-evolving market.
Source: Krones Group with additional information added by GlassBalkan
