Heidelberg chief executive Bernhard Schreier said that the move came in response to changes in the print industry.

As announced Heidelberg will reallocate its resources and refocus its efforts in alignment to its core customer base on the offset sector, said Schreier.

The German press manufacturer has signed a mutual agreement with Kodak for the transfer of its digital assets, although the deal is reliant on the approval of the relevant competition authorities.

Heidelbergs digital assets include its monochrome presses, its 50% share in the NexPress project which it shares with Kodak, as well as its wholly owned NexPress interests in Kiel, Germany.

Under the terms of the agreement Heidelberg would not compete against the new owners of its digital division for two years, and will receive 81m ($150m) from Kodak if sales targets are met in that period.

With sales of 160.5m (euro240m) in the financial year 2002 / 2003 Heidelbergs digital division accounted for around 6% of its total turnover.


Kodak has announced that the acquisition will hit its profits for 2004. It told shareholders that expected operating earnings per share will be down to $2.05-$2.35 from its earlier estimate of $2.25-$2.75.

Heidelberg has also reached an agreement on the major issues with Goss International for the sale of its web division, although definitive details of the deal will be agreed in the coming weeks.

Heidelberg intends to transfer 2,100 employees, from sites in the US, France and the Netherlands to Goss International. The transfer will include Heidelbergs commercial web and newspaper press interests as well as the web finishing business in the US.

Goss has manufacturing sites in Preston, Nantes in France, and in the Far East.

Schreier said that the market volume for the firms web offset presses had been hit by a weak economy and low advertising spends. Under the deal Heidelberg will hold less than a 20% share in Goss International.

Goss International chief executive Bob Brown said: We have respect for the Heidelberg Web Systems team and product portfolio. An acquisition opportunity of this type would assist our efforts to grow our global web press business.

With sales of 287m Heidelbergs web division accounts for 10% of its sales.

by John Davies