Germany: KHS Exits Keg Business

KHS, a subsidiary of Salzgitter AG, has decided to gradually exit the Keg equipment business. According to insiders, the company has ceased production of keg machines but will continue offering service for existing equipment. This move comes as the keg segment has contributed minimally to overall revenue in recent years. Analysts view this as a strategic withdrawal from competition, as KHS equipment has traditionally been more expensive than rival products.

KHS's involvement in keg equipment dates back to the late 1990s, when the company acquired GEA Till GmbH & Co. KG, a global leader in keg filling systems at the time. The company served breweries and soft drink bottlers worldwide. In 2011, KHS introduced the Till CombiKeg system, an innovative solution for cleaning and filling kegs. However, following multiple management changes, priorities shifted, and the keg business gradually lost importance.

Strengthening Expertise in Bottle Handling

In parallel with its exit from the KEG market, KHS is expanding its capabilities in bottle handling. The company recently acquired a majority stake in Austria-based Tyrolon-Schulnig GmbH, a specialist in active bottle handling systems. Tyrolon is renowned for technologies like the tyrolon Star® and tyrolon®-Neckclamp system, which enhance efficiency, flexibility, and safety in PET and glass bottle transport.

Martin Resch, Managing Director of KHS, emphasized the strategic importance of the partnership: “This collaboration provides significant added value to our customers by enabling us to deliver more comprehensive system solutions.” While Tyrolon will continue to serve its existing customer base as an independent entity, the partnership with KHS will open new global growth opportunities for the Austrian company.

Focus on Can Technology with H. F. Meyer Acquisition

KHS and Ferrum Packaging AG have also joined forces to acquire H. F. Meyer Maschinenbau GmbH & Co. KG from Neustadt in Holstein, Germany, effective January 1, 2025. H. F. Meyer will remain an independent entity under the Ferrum Group and will serve as a center of excellence for can technology. The acquisition leverages the expertise of all three companies to develop advanced solutions for can rinsers, turners, and vacuum bridges.

“By pooling our resources, we aim to offer the best can lines in the world,” said Beat Bühlmann, Chairman of Ferrum Group’s Board of Directors. The collaboration will enhance the efficiency and quality of equipment, benefiting the entire beverage industry.

A Strategic Repositioning

While KHS has moved away from the keg business, it is doubling down on its commitment to bottle and can technology. With its investments in Tyrolon and H. F. Meyer, KHS is positioning itself as a leading system provider for the global beverage industry, ensuring innovative and efficient solutions for its customers.

 

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