Gallus is continuing to restructure its labels business unit, a process that began after the global economic downturn in 2009.
The company says it expects the global market for label printing machinery to remain ‘difficult’ due to continuing volatility in many industrialized economies and the associated uncertainties surrounding investment in capital goods, while at the same time expecting faster growth in emerging countries.
‘Measures will be taken to expand the sales and servicing capacities in high-growth regions, improve the cost structure at production plants and focus on innovating high productivity functions that generate added value for label printing machines,’ said the company.
The first of these innovations, the EM S press with its shorter web path, was unveiled at Labelexpo 2011, along with the Gallus ECS C converting machine for processing digitally printed labels. The first machines are reported to be running successfully in a number of field tests.
In emerging countries, Gallus is expanding its sales and service organizations and centers to meet rising demand. A sales and service network is currently being set up in China, with its head office in Shanghai.
During 2010 and 2011, sales and service centers for Latin America were set up in Sao Paulo, Mexico City and Santiago. Gallus companies were also set up in Singapore and sales and service presence established in Thailand, Malaysia, Indonesia, India, Sri Lanka and Pakistan in 2011.
Customer-facing activities at the production plants will be concentrated at the company’s St Gallen site in Switzerland. Parts production at the Langgöns site, Germany, will be wound up – at the same time as assembly capacity is boosted at the site to handle growing sales of the Gallus ECS 340 system.