In filings related to its filing for bankruptcy protection, Highcon posted 2024 sales up 117% at $18.2m (£13.8m), while the firm’s loss from current operations more than halved, at $10.8m (2023 loss: $23.3m).
Highcon documents stated that on 3 July 2024 the firm had signed a cooperation agreement with a “leading global Germany company in the sale of products for the packaging manufacturing industry”, with around 30 sales people at the German firm involved with promoting sales of Highcon systems.
“As part of the cooperation agreement, the company was expected to sell a number of machines before moving to the investment phase.”
However, the ongoing Israel-Hamas conflict and global business jitters around geopolitical events including President Trump’s trade tariffs resulted in firm orders being delayed.
The Israeli manufacturer of digital cutting and creasing kit had expected $10m-worth of orders to land in Q1 2025.
Yesterday (2 April) Trump confirmed tariffs of 17% on imports from Israel.
Highcon's filings also stated that earlier this year it had presented the possibility of immediate investment in Highcon to the German firm.
“At the end of the discussion, the German company decided at a meeting held at the end of February 2025 to postpone the investment discussion until the end of 2025 and wait.”
The identity of the German manufacturer was not disclosed.
Heidelberg confirmed it had no connection with Highcon.
At Drupa Highcon teamed up with Koenig & Bauer Durst to demonstrate a fully-digital production workflow from print to finishing.
A Koenig & Bauer spokesperson told Printweek that the group would not comment on ongoing legal proceedings, regardless of the circumstances.
Highcon also revealed that two leading German companies had proposed to pay around €20m (£16.8m) for Highcon to complete the development of its Vulcan device for the corrugated market, but the slowdown in the market meant these proposals were not implemented.
Going concern issues around Highcon’s finances and inability to pay debts of around $6m also affected customer confidence.
Highcon currently has 64 customers around the world, with 85 systems installed.
The 20 employees remaining at the business are currently tasked with ensuring customers continue to receive consumables and service, while a way forward for Highcon is sought under court protection.
The firm's assets include valuable patents and intellectual property know-how.
Highcon shares are traded on the Tel Aviv Stock Exchange and its biggest investors are Benny Landa’s Landa Ventures, HND Investments, and Nusha Holdings.
