Andy Vels Jensen, managing director of Heidelberg Australia and New Zealand, said his first thoughts go out to the individuals and families affected by the news.

"It’s never good when so many people within our industry feel the brunt of a world economy in dire straits," he said.

"It's no surprise though that something 'had to give' on the supply side."

Vels Jensen said it was too early to speculate what impact the insolvency would have on the industry and the local market.

Dave Lewis, general manager, sheetfed presses at KBA Australasia, told ProPrint that on a human level it was "shocking news".

"It is the market that we are in so we can't afford to be smug about it, and although Manroland is our only competitor in packaging over here, we are certainly not rejoicing," he said.

"It is a tough market, and we have been through similar difficulties, but being a public company we have been able to deal with the same pressures in a different way.

"It seems that three German press makers was one too many," said Lewis.

As the investment deal unravelled and administrators were called in, Heidelberg's share price rose 20% over two days to close at €1.45, while KBA's stock also rallied between 23 and 25 November, to close up 17% at €11.15.

According to Reuters, investors in Germany have greeted the news with mixed reactions, with some expecting the rival press makers to win market share, while other claiming there is still too much overcapacity in the market.

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