FRANKFURT (Reuters) - German printing machine maker Heidelberger Druckmaschinen announced plans to shut down its own production of finishing machines, which will result in the closure of a factory and affect 650 jobs.
It said on Wednesday it was entering a strategic partnership with China’s Masterwork Machinery Co, which would in future develop and manufacture Postpress Packaging products.
Swiss company Mueller Martini will take over servicing of installed equipment from discontinued series, it added.
The reshuffle will improve earnings by about 30 million euros ($40.1 million) a year and is a step toward achieving its target margin on earnings before interest, tax, depreciation and amortization (EBITDA) of at least 8 percent in its financial year 2015/16, Heidelberger Druck said.
($1 = 0.7484 Euros)
(This version of the story corrects headline and lead to show that Heidelberger Druckmaschinen is shutting down its production of finishing machines, not folding machines)
Reporting by Maria Sheahan; Editing by Kirsti Knolle and David Evans