Syntegon with stable business development in 2022

Syntegon looks back on a stable business development in 2022 despite challenging market conditions.

– Increase in order intake and sales compared to 2021
– Alternative packaging solutions and resource-efficient technologies support the pharmaceutical and food industries for greater sustainability
– New solutions for the food industry provide answers to ongoing automation needs
– Award-winning innovation for the processing of pharmaceutical small batches
– Expansion of the portfolio in service and digital solutions

Syntegon looks back on a stable business development in 2022. Thanks to its proven machinery and service portfolio, its innovative strength, and its global presence with 37 locations in 20 countries, the company increased both order intake and sales despite ongoing challenges from the global supply chain crisis last year. Order intake rose by 3.0 percent from EUR 1.50 billion to EUR 1.55 billion, while total sales increased by 2.6 percent from EUR 1.41 billion to EUR 1.44 billion. Two-thirds of total sales came from worldwide machine sales, with the remaining third from service offerings. The sales in 2022 were generated roughly equally across the key markets worldwide: 32 percent in Europe, 33 percent in North America, and 35 percent in Asia and the rest of the world. The share of America slightly increased, while Europe's share decreased somewhat. "In a year with challenging conditions, we managed to develop our business steadily thanks to our proven customer and supplier relationships, our global presence, and our innovations," says Dr. Peter Hackel, Managing Director of Syntegon.

Trends in 2022

The 2022 fiscal year was characterized by the impacts of the war against Ukraine, the energy crisis affecting Europe in particular, and the challenges of the global supply chain situation. High inflation rates also influenced the economy, especially in Europe and North and Central America. Despite these conditions, Syntegon succeeded in maintaining stable business growth.

The trend toward more sustainable packaging solutions continues in the food industry. This is reflected not only in its new machinery business, where the company has been developing innovative solutions with alternative packaging materials for many years, but also increasingly in its service offerings — for example, in the course of retrofitting existing systems with sustainable packaging materials.

The process of increased automation accelerated due to the COVID-19 pandemic and continued in 2022. Syntegon experienced strong demand in North America for its process and packaging technology in the food sector, especially in the chocolate and bar segments.

In the pharmaceutical industry, the winding down of the special COVID-19 boom in the Chinese market was noticeable. In 2022, trends that had been overshadowed by the pandemic in previous years regained importance. These include the development toward small batch sizes for personalized medicines, for example, for cancer treatment. In addition to resuming projects in this area, Syntegon's pharmaceutical division, which accounts for 54 percent of total sales, saw high regional demand, especially in Latin America, where many investments had been postponed in recent years. Sustainability also gained increasing relevance in the pharmaceutical sector, particularly regarding the reduction of CO2 footprints of manufacturing companies.

Sustainability and Responsibility

In 2022, Syntegon further intensified its efforts in the areas of environment, social responsibility, and corporate governance (Environmental Social Governance, ESG). One of the company's goals is to reduce its CO2 emissions by 25 percent by 2025 compared to 2019. To achieve this, Syntegon installed new photovoltaic systems at locations in Beringen, Crailsheim, Dresden, and Verna (India) in 2022.

The company also supports its customers on the path to more sustainable production. With a newly developed and TÜV Rheinland-certified method for calculating a life cycle analysis, Syntegon offers manufacturing companies in the pharmaceutical and food industries full transparency regarding the CO2 footprint of its machines.

The provider of process and packaging technology also takes responsibility for its 5,800 employees. A global survey of the workforce in 2022 showed that the engagement and high commitment of employees, already above industry average the previous year, increased even further. Another indication of this is the recently published "LinkedIn Top Companies" ranking, in which Syntegon ranks second among the 25 best employers for career development in Germany.

Research and Development

In its more than ten competence centers, Syntegon continued to drive market-specific research projects in 2022. Over 1,400 employees in research and development developed numerous innovations, reflected in an increased number of 2,000 patents and patent applications (2021: 1,800). Expenditures for research and development in 2022 amounted to EUR 49 million, exceeding the previous year's EUR 46 million.

"Our business focuses on the needs of our customers. That’s why we are constantly working on new process and packaging solutions for the pharmaceutical and food industries and driving market trends such as sustainability, digitalization, and automation," says Dr. Michael Grosse, Chairman of the Management Board of Syntegon.

System Competence for Food

Several new developments launched by Syntegon in 2022 highlight the company's commitment to sustainability. The proven Sigpack TTM cartoner platform has been integrated with a Lock-Style technology, enabling energy and material savings. The new PMX packaging machine for ground coffee and whole beans processes recyclable mono-materials and saves energy and material through condition monitoring.

With various innovations, Syntegon helped shape the trend toward greater automation in the food industry in 2022. These include the new DCS discharge station and the innovative IDH handling system for particularly efficient and gentle processing of cookies and crackers, as well as the complete NutraFlash line for the production of gummy and jelly products. The further developed, highly flexible Robotic Pick & Place Platform (RPP) automates process steps such as handling, feeding, and loading. The sale of the 300th packaging system for bars demonstrates that Syntegon can meet current market demands for efficiency while maintaining high quality and flexibility.

Innovations for the Pharmaceutical Industry

In 2022, Syntegon's pharmaceutical division received a prestigious award: Versynta microBatch was honored with the German Packaging Award. Syntegon is developing the fully automated, glove-free production cell together with the globally active pharmaceutical service provider Vetter to meet the demand for small batches of highly potent liquid medicines.

With the Fluid Bed Laboratory Equipment Solidlab 2 Plus and the tablet press TPR 200 Plus, Syntegon also introduced new solutions for manufacturing solid pharmaceutical forms in 2022. Both technologies support time-saving product transfers from laboratory to production scale, with a particular focus on continuous manufacturing processes.

Expanded Portfolio in Services and Digital Solutions

The continuous expansion of service offerings and digital solutions significantly contributed in 2022 to better meet the daily needs of customers for its 67,000 installed machines worldwide. The company's portfolio was expanded with Service Agreements that offer customers effective plant and maintenance management at fixed prices.

The new cloud-based software solution Synexio enables real-time collection, analysis, and visualization of machine and production data. Overall, process and packaging experts advanced the digitalization of machine connectivity, increasing the number of connected machines at customer sites.

Syntegon restructured its spare parts supply chain last year, significantly improving delivery times and adherence to schedules in customer projects. The service business grew especially in America due to rising demand for service agreements and digital solutions.

Continuation of Market Trends in 2023

A key highlight for Syntegon in 2023 is the interpack trade fair in Düsseldorf, taking place from May 4 to 10. With its product innovations for the pharmaceutical and food industries presented there, Syntegon will once again address market trends such as sustainability, digitalization, and automation.

Syntegon recently joined the Science-Based Targets initiative and will validate its emission reduction goals in the coming months. In mid-year, the company will also publish its first sustainability report.

"With our solutions, we will continue to contribute in 2023 to providing people with safely packaged food and medicines produced under the highest standards — in line with our mission: Process and packaging technology for a better life," concludes Dr. Michael Grosse.