Print workers stitch books at a factory in Nanjing, Jiangsu province. China generated 15.9 percent of the revenue of the German printing press maker Heidelberger Druckmaschinen AG last year. [Shao Xian / for China Daily]

China 'pivotal' to printing machine producer's continued development

SHANGHAI - Printing machine maker Heidelberger Druckmaschinen AG on Tuesday unveiled a major expansion of its plant in China, in a move to cash in on the nation's fast-growing printing industry.

The plant in Shanghai's Qingpu district, the Germany-based company's only one in China, has been expanded by almost one-third to 90,000 square meters, with a major boost in capacity.

At present, one-third of the Heidelberger printing machines sold in China are made in that plant. The facility mainly makes the company's low-end machines, with the more complicated models imported from Germany.

Including the expansion, the plant - launched in 2006 - represents total investment of 500 million yuan ($78.1 million).

The boost in manufacturing capacity comes as the business of the world's leader in offset printing presses grows rapidly in China.

Turnover reached about 4 billion yuan in 2010, up about 70 percent from 2004, making China the company's biggest market.

China generated 15.9 percent of its 2.6 billion euros ($3.5 billion) in revenue last year.

"As our biggest market, China is pivotal to our company's development. The expansion is a sign of our commitment to the Chinese market. We will continue investing as the market grows," Chief Executive Officer Bernhard Schreier said in a news conference in Shanghai.

"China's printing industry has grown rapidly in the past decade and we expect the momentum to continue, which will give us plenty of business opportunities."

According to Heidelberger, China's printing volume in 2010 was triple that of 2000, standing at the equivalent of 31 billion euros. China has more than 100,000 printing companies, all potential customers for Heidelberger.

China aims to upgrade the technology and efficiency of its printing industry during the 12th Five-Year Plan (2011-2015), the country's economic development blue print.

That plan provides Heidelberger with a big opportunity, as many printing companies will upgrade their machinery, said China CEO Cai Liancheng.

"We are one of the best printing machine makers worldwide and have already made our name known in China. I believe the printing companies will come to us when they want better machines," said Cai.

Schreier said the rise of digital publishing, the paperless office and online shopping won't pose a major challenge for his company's business, as many experts have expected.

Rather, he added, the rapid development in packaging print will offset the decline in publishing print to help China's printing industry maintain 10 percent growth for at least a decade.

"Everything that can go online will go online but there are places where paper always works better, such as packaging, which is our main business in China," he said.

China Daily

(China Daily 09/29/2011 page16)