"Heidelberg is looking to begin manufacturing of printing presses in A3 format for the Chinese market as soon as possible after completing the preparatory work," said Schreier.

The move is dependent on the initial success of the firm's first factory in China, which will make folders and is set to deliver its first products at the start of next year.

The firm has increased the scale of the factory, which is being built west of Shanghai, since it first revealed its plans last year (PrintWeek, 21 December 2004). At the time it said that it would employ 50 staff, a figure which has now quadrupled to 200.

Presses could follow before the end of 2006. The firm highlighted that products made in the 1,200sqm factory would be for the domestic Chinese market.

"We are looking to move into new market segments in China by deploying more attractively priced products developed specifically for this market," said Schreier.

However this was subject to review after the firm had gained experience in China and could lead to manufacturing for non-Chinese markets within five to 10 years. It said the move was significant, but that it was too early to speculate or draw further conclusions.

The 2004/2005 year to 31 March was a landmark for the firm marking its return to net profit of 41m (Euros61m) on sales up 3% to 2.1bn (PrintWeek, 28 April). It proposes to pay its first dividend in three years.

For next year the firm anticipates moderate growth, with order intake up 8% at 2.3bn, and expects profits to exceed this year's. It also predicts that for the first time its post-press division will break even, before moving into profit.

Story by Barney Cox