A new Flexible Materials Business Area incorporating five converting-machinery product lines has been formed by Lausanne, Switzerland-based Bobst Group. Following a protracted period of negotiations, Bobst acquired the Valmet Converting operations of Finland's Metso Corp. on Jan. 30.

"The lengthier period gave us more time to prepare for integrating Valmet Converting into Bobst Group," says Claude Currat, head of the Flexible Packaging Business Area and a member of the Bobst Group Executive Committee. Currat spoke during an international teleconference March 19. "Since the end of January, the integration has gone very smoothly. All resources are now ready and in place."

The Flexible Materials Business Area includes Flexographic Printing under Schiavi (Piacenza, Italy); Gravure Printing under Rotomec (San Giorgio Montferrato, Italy) with additional support from Schiavi; Vacuum Metallizing under General (Heywood, UK); Coating and Laminating primarily under Rotomec, selling Rotomec for coating and Schiavi for laminating; and Slitting/Rewinding under Atlas (Bedford, UK) for primary slitters, Midi for aluminum-foil slitting, and Titan for flexible-packaging slitting.

Currat cited several objectives behind Bobst's acquisition of Valmet. While the converting market has become global, growth in many areas will remain flat or even decline in the future, he says, as the customer base continues to consolidate. "However, good prospects are seen in South America, Eastern Europe, Asia and especially China as manufacturing capacity moves toward lower-cost countries," he says.

Bobst is already responding by manufacturing some of its equipment in Brazil and India. These are typically lower-cost, entry-level machines such as slitters, although the supplier is contemplating also manufacturing some gravure presses and coating lines in Brazil. "Whether we expand our Brazilian operation or work more closely with our partners in that country is not yet decided," Currat says.

The flexible materials division of Bobst Group USA will now maintain sales/service operations for North America from two locations: Charlotte, NC, and Roseland, NJ.