Mazen Wafic El-Tibi, deputy general manager and sales and marketing director for Heidelberg Middle East (ME), told Packaging MEA that the firm is now looking to extend its growth by helping its customers serve overseas markets.
Over its 2013/14 financial year, Heidelberg had strong sales in the region through providing “the right solution to the customer’s requirement coupled with good service organisation”, he said.
“We had a good year, with the CD102 and the Gallus in narrow web,” he said.
But maintaining this momentum in areas such as packaging now also hinges on helping customers expand their markets abroad, he added.
“Our growth sustainability relies on our customers’ adaptability to the market needs and opening the horizon to address the potential of overseas customers and print buyers,” he said.
“Printing techniques in the region have reached a good level of innovation and quality. Do not limit yourselves to the local market. Invest in your people and educate and train them to keep up with the innovations.”
He added that packaging remains on “a steady growth path in our region”.
“As we have a strong presence, we will capitalise, sustain and enhance our services,” he added.
“Looking into our clear status and presence in the Middle East market, I can say that we have the largest installed base with regard to sheetfed offset presses as per the fiscal year 2013/14.
“As for the narrow web sector, with our Gallus and allied products, we have grown as much as the market has grown here in the region. We have concluded several deals in this fiscal year that leave us in a leading position in the flexo narrow web sector of packaging and converting business – not to forget the major flexo folding carton narrow web installations done recently.”
Meanwhile, Heidelberg announced with its 2013/14 results that it has bounced back from five straight years of losses, achieving a slim net profit of EUR4m ($5.4m).
The group now aims to improve its earnings with an EBITDA margin of at least 8% for 2014/15.
“In returning to profitability, we have reached a first important milestone,” said Heidelberg CEO Gerold Linzbach.
“We are now starting the next stage of the group’s reorganisation so as to achieve a sustained increase in corporate value. This involves making acquisitions in growth segments, scaling down areas of business with weak margins, and cutting structural costs in order to further improve profitability.”
Heidelberg is developing its digital portfolio with the complete takeover of Gallus. In autumn the two firms will unveil a digital printing system for labels based on Fujifilm technology.
“Our aim in acquiring Gallus is to achieve fast and profitable growth in the digital label sector,” said Linzbach.
The print giant also spots opportunities in expanding in services and consumables, which offer strong margins. Following the successful takeover of a coating manufacturer, discussions on a further acquisition are currently under way.
As part of the collaboration with Fujfilm, an OEM agreement to supply platesetters (CtP) has also been concluded. Fujifilm will market Heidelberg platesetters under its own name in future, while Heidelberg has taken over some European sales activities for Fujifilm printing plates.