Heidelberger Druckmaschinen AG Expands Plant in China

Heidelberg, (PresseBox) - .
- Third construction phase officially opened at Qingpu site near Shanghai
- Plant expansion serves growing demand from Chinese print shops
- Local production portfolio covers all standard machines required by Chinese market
- Heidelberg tapping into new customer segments in the industry's most important future market

Heidelberger Druckmaschinen AG (Heidelberg) celebrated the official opening of the third construction phase at its Qingpu site near Shanghai in China. The completion of this phase extends the plant's production area to some 45,000 square meters - a threefold increase in the space of just four years. This expansion enables Heidelberg to serve the growing demand from Chinese print shops.

The company has been manufacturing small- and medium-format presses and folding machines in Qingpu since 2005. For the past year, Heidelberg has also been producing presses in the 70 x 100 cm (27.56 x 39.37 in) format class at this site, so it now covers all standard machines required by the Chinese market. Around 400 staff work at the site. The machines made there, primarily for the local market, comply with globally standardized Heidelberg quality criteria. In the future, Heidelberg is planning to gradually increase the proportion of such standard machines that are exported to neighboring countries.

"China is now our number one individual sales market and plays an important role in our business development. The demand for print products is growing all the time in China and has more than tripled over the past ten years. Every third machine sold by Heidelberg in China now comes from Qingpu. Offering locally produced machines has enabled us to tap into additional customer segments in our industry's most important future market. Our strategy of taking full advantage of the potential in emerging markets is thus paying off," said Heidelberg CEO Bernhard Schreier at the opening ceremony.

Qingpu integrated in network of Heidelberg sites

The Qingpu site is an integral part of the Heidelberg network comprising the Wiesloch-Walldorf, Amstetten, Brandenburg, Leipzig, and Ludwigsburg sites in Germany and Nové Mesto in Slovakia. This ensures that, even with a growing proportion of local suppliers, all processes and quality standards satisfy the globally standardized requirements at Heidelberg.

"Our customers can always rely on products from Heidelberg being of the highest quality, irrespective of whether a machine originates from Germany or China," said Stephan Plenz, member of the Management Board responsible for Heidelberg Equipment and thus for the Qingpu site. "This is confirmed by the more than 1,000 presses and folding machines already supplied from Qingpu. To ensure high quality standards, we train our staff with support from Germany and approve all our suppliers in accordance with very strict standardized criteria," he added.

Heidelberg is the only press manufacturer based in either Europe or Japan to have its own production facility in China. As a result, it is further consolidating its leading role on the world's strongest growth market in the print media industry. "By operating its own production facility at the Qingpu site, Heidelberg is able to benefit from cost advantages while also minimizing the foreign exchange risk and import disadvantages," said Plenz.

Figure 1: The extended Heidelberg site in Qingpu, near Shanghai, with new assembly hall and logistics center now has a production area of some 45,000 square meters.

Figure 2: Symbolic printing unit assembly during the official opening of the new assembly hall at the Heidelberg site in Qingpu. From left to right: Stephan Plenz, member of the Management Board responsible for the Heidelberg Equipment division, Qingpu Plant Manager Stefan Hasenzahl, the local government representative from Qingpu, and Heidelberg CEO Bernhard Schreier.

Figure 3: HEI Quality - a Heidelberg employee assembling a printing unit at the Qingpu site and adhering to the company-wide standardized quality standards.

Further image material and information about Heidelberger Druckmaschinen AG can be found in the Press Lounge at: www.heidelberg.com.

Important note:

This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.

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