Heidelberg realigns post-press portfolio

Heidelberg has realigned its post-press portfolio, with products for the packaging market now to be developed and manufactured by Chinese OEM partner Masterwork Machinery.

Heidelberg CEO Gerold Linzbach

In-house production at the Heidelberg sites in Germany is no longer competitive under new market conditions, the supplier said. The relevant operations are therefore being discontinued, except for production of folding machines at the Ludwigsburg site.

Sales and service of post-press packaging products will be retained by Heidelberg.

In the commercial post-press arena, Heidelberg will only continue to market the established folding machines and cutters. Swiss company Müller Martini will take over service activities for installed equipment from discontinued series. These measures will not affect business with Polar cutters and Heidelberg folding machines, it said. 

The reduction of in-house capacities will result in the closure of the Leipzig site and a corresponding reduction in the workforce at the Ludwigsburg and Wiesloch-Walldorf sites.

Stephan Plenz, member of the board at Heidelberg responsible for equipment, said: ‘We were able to win two renowned suppliers as partners for our realigned post-press portfolio. They will help us provide our customers with competitive products and ensure continuity in services and service parts.’

Heidelberg has said this move is an important step in achieving its target of an EBITDA margin of at least eight percent in the financial year 2015/2016. The measures are expected to improve Heidelberg’s result by around 30 million EUR annually, largely taking effect from the next financial year.

Heidelberg chief executive officer Gerold Linzbach (pictured) said: ‘The competitiveness of post-press product lines at Heidelberg was limited, so these activities are being placed on an entirely new footing. Realigning these areas is an important step in improving the company's economic situation and getting closer to the target EBITDA margin of at least eight percent.’