manroland Outlines Standalone Strategy for Future SuccessSeptember 17, 2010
The planned measures will likely lead to reductions in staffing levels by 500, mainly in administration. As a result, the number of employees will drop to about 6,000 by the end of 2012. This includes previously announced job losses, measures for semi-retirement, and natural employment fluctuations. Our objective is to keep job losses at a socially acceptable level. Talks with labor representatives have been entered into.
“These measures are oriented towards an order volume of 1.4 billion euros in our core business, which is around 70 percent of the high of 2007. Greater integration of our business activities and implementation of consistent processes will make us leaner, more efficient, and more effective in the future. The two new business sectors, Industrial Production as well as Technical and Industrial Services, will also open up new business opportunities for us,” states Gerd Finkbeiner.
All of these measures are planned for completion by mid 2012. The associated savings are estimated at 50 million euros annually, and will be fully realized from 2013 onwards.
Future growth as an offshoot of the core business
Overall, the intended structural changes will strengthen the core business and thus go hand in hand with the new concentration on future markets and the services sector.
Sales generators such as emerging markets are of special importance for manroland’s business, which is why the company took over control of the sales and service networks in India, Latin America, southern Africa, Australia/Pacific and Southeast Asia just over a year ago. The market organization that was developed in-house has proven itself in growth markets and has already achieved great success.
manroland is pursuing a low-cost strategy to support growth in the emerging markets. In this regard, the company recently concluded a cooperation agreement with the US manufacturer Tensor. This collaboration will open up new market segments for manroland in attractive regions: The target markets include Central and South America, Canada and Mexico (part of NAFTA), Southeast Asia, and Southern Africa. manroland is pursuing cooperation, as it enables us to quickly and flexibly raise our regional profile in target markets.
In the digital printing sector, manroland is still looking for suitable collaboration with an established provider.
Over the past few years, the share of the service business has constantly increased and is now at just over 30 percent. This business sector promises further growth in the future, and manroland expects an increase in sales in the printservices sector (maintenance and service, as well as spare and wear parts) of over 7 percent annually. Furthermore, the business for consumables (printcom) and consultation (printadvice) is expected to continue to grow at a similar rate.
The Executive Board is convinced that manroland will be able to meet these challenges best as an independent company that has worldwide market coverage and a strong range of products and services. By following the previous course and setting off in new strategic directions, the company will be able to grow beyond its core business and remain profitable for the long-term.