GEA Group, the Düsseldorf-based mechanical engineering group, focuses with even greater emphasis on its leading position as system provider to the food industry and other technologically sophisticated process industries. The segment GEA Heat Exchangers (“HX”) is no longer be counted as core business by GEA. GEA has hence decided to separate from this business in the medium term and is reviewing all options for a separation from the HX segment.
This is the outcome of a comprehensive technological and strategic portfolio review launched by GEA last year. The aim of the review was to identify the core business areas which bear the greatest synergy potential. Those businesses are to be systematically further developed and serve as the foundation for the sustained future growth of the GEA Group.
“Efficient deployment of our human and financial resources is central to GEA’s continued successful development going forward. This means we have to focus as we expand our business,” said Jürg Oleas, Chairman of the Executive Board of GEA Group Aktiengesellschaft. “The in-depth review of all business units has shown that our technologies for the food industry and their deployment in alternative sectors hold very substantial growth potential. Their markets are highly stable and are driven by long-term global megatrends. We therefore plan to sustainably increase the proportion of Group revenue accounted for by food technologies in the medium term to around 70 to 75 percent.”
The HX segment is highly profitable and has a strong market position. There are only limited potential synergies between HX and the other business units in the GEA Group portfolio, however, as their business profiles differ. The scope for Group-wide use of technologies and capabilities is limited. In light of this, GEA firmly believes that the HX business will be able to develop even better within a new ownership structure.