SHERIDAN, WYOMING – Dec. 9, 2024 – Heidelberger Druckmaschinen AG (HEIDELBERG) has announced a comprehensive plan to strengthen the competitiveness of its Wiesloch-Walldorf site, securing its future as a hub for innovation and production. Developed in collaboration with the Works Council and IG Metall union, the plan outlines key initiatives to reduce personnel costs, enable investments in future technologies, and support HEIDELBERG's overall growth strategy.
Focus on Cost Efficiency and Investment
The plan aims to reduce personnel costs by over €100 million over the next three fiscal years through a combination of measures. These include offsetting future salary increases with performance-based compensation and implementing a socially responsible reduction of approximately 450 positions.
"The future plan at the Wiesloch-Walldorf site is an important step for HEIDELBERG to lay the foundation for future growth in the Group," says Jürgen Otto, CEO of Heidelberger Druckmaschinen AG. "Through the agreement, we are reducing costs at the largest location in Germany and creating space for important investments."
Securing the Future of the Site
Despite the workforce reduction, the plan includes a site guarantee for a minimum of 3,500 employees until the end of 2028. This commitment underscores HEIDELBERG's dedication to maintaining a strong presence in Wiesloch-Walldorf and leveraging the site's expertise in industrial and complex product manufacturing.
"We are convinced that we can manufacture further industrial and highly complex products at the Wiesloch-Walldorf site, including for other industries," adds Otto.
Investing in Future Technologies
The plan also prioritizes investments in future technologies, including a modern data center, infrastructure and production facility upgrades, employee training and development, and software and AI projects. This focus on innovation ensures that the Wiesloch-Walldorf site remains at the forefront of technological advancements in the printing industry and beyond.
"HEIDELBERG has enormous competencies and potential," says Otto. "We are a driver of innovation beyond the printing industry."
Growth Strategy with Global Outlook
The future plan aligns with HEIDELBERG's broader growth strategy, which focuses on expanding its international business, particularly in markets like China and Asia. The company plans to leverage its strong market position, local production in China, and partnership with MK Masterwork to drive growth in these key regions.
Furthermore, HEIDELBERG aims to capitalize on the growing digital printing market through its collaboration with Canon, expand its packaging business to meet the increasing demand for alternatives to plastic packaging, and enhance its service, software, and automation offerings globally.
Financial Outlook
While the plan will result in one-off expenses of approximately €30 million in the current fiscal year 2024/2025, HEIDELBERG confirms its forecast for the adjusted EBITDA margin, which is expected to remain at the previous year's level of 7.2%. The company also maintains its revenue forecast at the previous year's level of €2,395 million.
A Pilot for Future Success
The successful implementation of the future plan in Wiesloch-Walldorf will serve as a pilot for other HEIDELBERG sites in Germany, including Brandenburg, Amstetten, and Ludwigsburg. This approach demonstrates the company's commitment to continuous improvement and its dedication to securing the long-term success of its operations.
Frequently Asked Questions
1. What are the key objectives of HEIDELBERG's future plan for Wiesloch-Walldorf?
The plan aims to reduce personnel costs, enable investments in future technologies, and strengthen the site's competitiveness within the HEIDELBERG Group.
2. How does the plan address personnel costs?
The plan includes measures to offset future salary increases and a socially responsible reduction of approximately 450 positions.
3. What is HEIDELBERG's commitment to the Wiesloch-Walldorf site?
HEIDELBERG guarantees a minimum of 3,500 employees at the site until the end of 2028 and plans to invest in future technologies to secure its long-term viability.
4. What are the key areas of focus in HEIDELBERG's growth strategy?
HEIDELBERG aims to expand its international business, particularly in China and Asia, capitalize on the growing digital printing market, and enhance its packaging, service, software, and automation offerings globally.
5. How will the future plan impact HEIDELBERG's financial performance?
While the plan will result in one-off expenses in the current fiscal year, HEIDELBERG confirms its forecast for adjusted EBITDA margin and revenue.