With printing press sales stagnating, Heidelberg is using engineering expertise to leverage growth in emerging technologies.
Heidelberg is thinking of itself as “a diversified high tech company that seeks growth specifically where the markets of the future are emerging” according to the company’s 2025/26 annual report.
But while it wants this to become one of three strategic pillars for the company going forward, there is a long way to go before matching print and packaging and its lifecycle business pillars. The new business includes Amperfied, its electric charging points business and HD Advanced technologies which focuses on security, energy and automation and robotics.
This business was set up at the start of the year to operate independently of the traditional businesses. It has struck partnership deals and will for example use the Brandenberg site to build defensive drones and autonomous security systems. A memorandum of understanding is expected to be announced with a Ukrainian company and Onberg, its joint venture with Israeli defence company Hondas. This will eventually lead to drone production at the site.
“In this way, Heidelberg is making itself more future proof and laying the foundation for long term attractive and profitable growth,” it says.
However, there is some way to go before the new division can match sales in print and packaging and the digital and lifecycle business. The new area accounts for 3% of Heidelberg’s sales while print and packaging accounts for 52% and lifecycle for 46%.
In the meantime it has to rely on brisling presses and other production equipment along with recurring revenue streams from software and consumables.
The packaging side requires a more integrated end to end solution involving AI systems. This was shown at the Interpack exhibition. There has been deeper cooperation with MasterWork and Heidelberg will be able to sell all MasterWork products. One arm of MasterWork has been driving into robotics and other digital technologies. Heidelberg’s latest Stackstar C robotic loading system is ready for series production.
The demise of Manroland Sheetfed has left a question mark over the availability of the Cartonmaster CX145, based on the Roland 900. “We are analysing developments and potential scenarios at the company” its says.
In commercial printing Heidelberg says the focus is on automation and systems integration, typified by the Jetfire 50 inkjet press. The Prinect Touchfree, which creates a single production environment across digital and analogue production, is in operation at a number of pilot sites Heidelberg says.
It has implemented AI chatbots to improve service and is using AI to accelerate software development. What used to take nine months will now take three months and reduce the cost of development.
The company is trimming costs elsewhere: production of the CX104 will be consolidated in China and other components will be outsourced to a new operation in North Macedonia. Its efficiency plan for the German factories is running ahead of schedule and exceeding expectations.
The extent to which this is needed is apparent in the sales performance. European sales rose 3% thanks to government policy in Italy in support of new investment and success in smaller countries. In Asia, sales in China were up 10%, not enough to compensate for falls elsewhere. And America dropped 2% because US printers are currently reluctant to invest. It resulted in a small increase in full year sales to €2,293 million (€2,280 million).
Looking forward Heidelberg expects a further decline in demand for conventional presses, “more than offset by its strategic initiatives already initiated up to the reporting year and by a forecast sales price increase”.