Heidelberg Solidifies Plans for Growth
Highlights:
- Employer, Works Council and trade union agree on a future plan for the Wiesloch-Walldorf site that strengthens competitiveness and enables investment
- Personnel cost savings of over € 100 million over the next three years by compensating for the upcoming wage increases and socially responsible reduction of around 450 jobs
- Future technologies come from Wiesloch-Walldorf – minimum workforce size guaranteed until the end of 2028
- Growth strategy focusing on digital, automation, packaging, service and industrial business has medium-term sales potential of more than € 300 million
- Forecast for financial year 2024/2025 confirmed
Heidelberger Druckmaschinen AG (HEIDELBERG), together with the Works Council and IG Metall, has adopted a plan for the future to strengthen the competitiveness of the Wiesloch-Walldorf site. This plan will reduce personnel costs by more than € 100 million over the next three financial years through various measures and thus not only increase cost efficiency, but also make investments possible. The agreement applies with immediate effect until December 31, 2028 and also includes a site guarantee for 3,500 employees as well as investments in the site.
"The future plan for the Wiesloch-Walldorf site is an important step for HEIDELBERG in laying the foundations for future growth within the Group. The agreement will enable us to reduce costs at the largest site in Germany and create space for important investments," says Jürgen Otto, CEO of Heidelberger Druckmaschinen AG. "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."
As part of the plan for the future, special items of around € 30 million will be recognized 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%. Sales are also forecast to remain at the previous year's level (€ 2,395 million).
Future plan as part of the growth strategy
The plan for the future is an important building block in the strategic positioning of HEIDELBERG, because the company is aiming to expand its international business, particularly through growth in markets such as China and Asia. With an outstanding market position worldwide, particularly in China thanks to local production and the partnership with MK Masterwork, the company is ideally placed to achieve this.
Thanks to the cooperation between HEIDELBERG and Canon, the company will participate even more strongly in the growing digital printing business in future. Incoming orders already confirm this from the next financial year.
In the packaging sector, HEIDELBERG 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% of business is already conducted outside of Germany. In total, HEIDELBERG sees growth potential of more than € 300 million in sales for all strategic initiatives by the 2028/2029 financial year.
At the same time, future investments are also secured, such as the modern data center at the Wiesloch-Walldorf site, the modernization of infrastructure and production facilities, training and further education, qualification and projects for software and AI.
Jürgen Otto: "HEIDELBERG has enormous expertise and potential. We are a driver of innovation beyond the printing industry."
To date, HEIDELBERG's personnel costs amount to around € 800 million per year, which corresponds to around one third of turnover. Over 50 percent of personnel costs are incurred in Germany, the majority of which are incurred at the Wiesloch-Walldorf site. In order to reduce personnel costs, the employer and employee representatives have agreed on a package of measures that will offset the future increase in salaries in the IG Metall collective agreement by offsetting it against performance-related pay. The measures also include the socially responsible reduction of around 450 jobs at the Wiesloch-Walldorf site. The site currently has around 4,000 employees. HEIDELBERG is relying on a demographic lever and employee retirements. On the other hand, the company is selectively finding solutions that meet the wishes of some employees who wanted to leave earlier. In addition to jobs in production, the measure also includes targeted reductions in administration and management.
Future technologies come from Wiesloch-Walldorf
At the same time, the parties have agreed on measures to secure the future of the site. For example, the agreement also includes a continued strong training quota for young employees and the understanding that future technologies should be located in Wiesloch. "HEIDELBERG has enormous expertise and potential. We are also demonstrating this with the future plan. We remain an attractive employer, also for young people, and a driver of innovation beyond the printing industry," says Jürgen Otto.
The agreement on the future plan applies to the Wiesloch-Walldorf site, but is intended to serve as a pilot for other HEIDELBERG sites in Germany. These include Brandenburg, Amstetten and Ludwigsburg, for example.
The preceding press release was provided by a company unaffiliated with In-plant Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of In-plant Impressions.
