Heidelberg Moves to Cut Costs

-- Graphic Arts Online, 7/11/2008 11:19:00 AM

Heidelberg said it would cut 500 jobs worldwide (by 2011) and expand printing press production outside of Germany, moving some press manufacturing to the U.S. The pressmaker is eyeing an expansion of its Chinese and Slovakian plants with production of small-format presses intended to move to the US, in a bid to achieve savings of around 15million Euros.

The company says a slowing global economy, rapidly increasing prices of raw materials, such as steel and energy, and problematic exchange rate movements have squeezed profits. (Link to press release www.graphicartsonline.com/article/CA6577583.html)

Heidelberg plans to reduce its R&D expenditure by consolidating current locations and pooling its development activities with the goal of lowering its research spending by 10%.

Despite a successful sales effort at last month’s drupa, the company says it believes overall that the printing press industry is facing a prolonged period of sluggishness. But, says there are still growth segments and dynamic markets - such as packaging printing - it is negative factors that will dominate.

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