Heidelberger Druckmaschinen is further expanding its international manufacturing operations in the 2026/2027 fiscal year. The group now manufactures its best-selling model entirely in Qingpu, China. It is also expanding assembly operations in North Macedonia, where costs are lower. High costs, weaker order intake, and a decline in operating margins are driving this restructuring. At the same time, around 450 jobs are set to be cut at the company’s German headquarters in Wiesloch-Walldorf. As a result, the site is losing jobs and further industrial value creation.
Heidelberger Druckmaschinen consolidates CX 104 production in China
The Speedmaster CX 104 is the focus of this relocation. Heidelberg now manufactures the press entirely at its Qingpu plant near Shanghai. However, production of this series actually began there back in 2021. The Chinese plant now supplies customers in numerous countries, thereby gaining greater importance within the global production network.
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The CX 104 is one of the most important machines in the current product lineup; more than 1,000 units of this series have already rolled off the assembly line. Print shops also use the model for packaging, labels, and conventional print products. Heidelberg benefits from lower costs and strong regional demand in China, though this results in German plants losing further shares of production volume.
North Macedonia to drive significant cost reductions
In addition, the group established a subsidiary in North Macedonia. Operations there will initially focus on manufacturing post-press systems and selected sub-assemblies. According to the company, labor costs are roughly on par with those in China, and state subsidies further reduce the financial burden. The site is expected to make a positive contribution to earnings starting in the 2027/2028 fiscal year.
However, this cost-cutting drive has direct consequences for the workforce in Germany. Around 450 of the original approximately 4,000 jobs at the Wiesloch-Walldorf site are set to be eliminated. The Heidelberg-based machinery manufacturer is relying on retirements and voluntary agreements to achieve this. Nevertheless, the workforce at its key German location is shrinking significantly. Consequently, a site guarantee remains in place for approximately 3,500 jobs through the end of 2028.
Declining Order Intake Increases Need for Action
In the 2025/2026 fiscal year, Heidelberg generated sales of €2.293 billion, representing an increase of around one percent. However, incoming orders fell by eight percent to €2.246 billion. Additionally, the adjusted operating margin narrowed from 7.1 percent to 6.6 percent. Conversely, net profit rose from €5 million to €15 million.
The Group anticipates largely stable sales for 2026/2027, aiming to boost profitability through cost savings and more efficient structures. At the same time, exchange rates, geopolitical conflicts, and investments in new business areas are weighing on earnings. Consequently, the Heidelberg Group is expanding its activities beyond traditional printing presses to include areas such as charging infrastructure, energy systems, and industrial system solutions.
Drone Defense Opens Up a New Business Area
Heidelberg has high expectations for its defense business. The company established a joint venture named Onberg with Ondas Autonomous Systems to develop and market autonomous drone defense systems. Plans also include establishing a production and development site in Brandenburg an der Havel. Initial target markets include Germany, Ukraine, and other European countries.
While this new business offers the potential for additional revenue in the long term, it will not replace significant portions of the core mechanical engineering business in the short term. Stable order volumes and lower production costs therefore remain crucial for Heidelberg. Although relocating operations to China and North Macedonia improves the cost structure, it results in reduced employment and lower vertical integration at the German plants.
Author: Blackout News
Sources: Welt (10.06.26) – Die Rheinpfalz (10.06.26) – Presseportal (10.06.26) – Heidelberg (10.06.26)