HEIDELBERG LOOKS TO FUTURE TECHNOLOGIES

The world’s biggest offset press manufacturer, Heidelberg, is refocusing its manufacturing site at Wiesloch-Walldorf for its growth strategy.

Heidelberg will reduce its workforce at the site by 11.5 per cent, some 450 workers out of the 4000 currently employed there will be released, under “socially responsible reduction”.

Heidelberg’s personnel costs amount to around €800m per year, which corresponds to around one third of turnover, with 50 per cent of personnel costs incurred in Germany, the majority of which are incurred at the Wiesloch-Walldorf site.

The company is looking to the future under new CEO Jürgen Otto, with the plant central to its plans. Otto said, “The future plan for the Wiesloch-Walldorf site is an important step for Heidelberg in laying the foundations for future growth within the group.” He said that the move will save €100m over the next three years, and will “create space for important investments”.

Otto said, “We are convinced that we will be able to manufacture further industrial and highly complex products at the Wiesloch-Walldorf site, including for other industries.”

Heidelberg’s growth strategy is focusing on digital, automation, packaging, service and industrial business, which has medium-term sales potential of more than €300m.

The agreement applies with immediate effect until 31 December, and also includes a site guarantee for 3,500 employees, as well as investments in the site.

As part of the plan for the future, special items of around €30m will be recognised in the current financial year 2024/2025. At the same time, the company confirms its forecast for the adjusted EBITDA margin, which is expected to remain at the previous year's level of 7.2 per cent. Sales are also forecast to remain at the previous year's level of €2.4bn.

Heidelberg says the plan for the future is an important building block in its strategic positioning, because the company is aiming to expand its international business, particularly through growth in markets such as China and Asia. 

Thanks to the cooperation between Heidelberg and Canon, the company says it will participate even more strongly in the growing digital printing business in future. It says incoming orders already confirm this from the next financial year. The Jetfire 50 inkjet cutsheet B3 press will be available in Q2 in Germany and in the second half in ANZ, with the B2 version of the Jetfire 75 scheduled for 2026.

In the packaging sector, Heidelberg says it will benefit from the growing global demand for replacements for plastic packaging. In addition, the company sees further global earnings opportunities in the expansion of its service, software and automation business.

Today, over 85 per cent of business is already conducted outside of Germany. Jürgen Otto said "Heidelberg has enormous expertise and potential. We are a driver of innovation beyond the printing industry."