Heidelberg has outlined its future plan for its Wiesloch-Walldorf site in Germany, saying it plans reduce personnel costs by more than €100 million over the next three financial years through various measures to increase cost efficiency and make investments possible.
It claims the move will strengthen the competitiveness of the Wiesloch-Walldorf site and includes a site guarantee for 3,500 employees, as well as investments in the site.
To date, Heidelberg said its personnel costs amount to around €800 million per year, which corresponds to around one third of turnover. Over 50 per cent 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 reduction of around 450 jobs at the Wiesloch-Walldorf site. The site currently has around 4,000 employees.
Heidelberg said it is relying on a “demographic lever and employee retirements” to reduce headcount.
It added that the company is also “selectively finding solutions that meet the wishes of some employees who want to leave earlier”. In addition to jobs in production, the measure also includes targeted reductions in administration and management.
Heidelberg added that the funds from reducing personnel costs will be used towards future investments such as the modern datacentre at the Wiesloch-Walldorf site, the modernisation of infrastructure and production facilities, training and further education, qualification, and projects for software and AI.
“The future plan for the Wiesloch-Walldorf site is an important step for Heidelberg in laying the foundations for future growth within the group,” Heidelberg CEO Jürgen Otto said.
“The agreement will enable us to reduce costs at the largest site in Germany and create space for important investments. 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.”
Heidelberg said the future plan for its Wiesloch-Walldorf site in Germany is an “important building block” for the company globally as it 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,” Heidelberg said.
The company also recently inked a cooperation agreement with Canon, with plans to participate even more strongly in the growing digital printing business in future.
In the packaging sector, Heidelberg said it 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 per cent 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,” it said.
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