Heidelberg focuses on growing label market and strengthens Gallus sites

• St. Gallen to be expanded into digital competence center
• Expansion of digital printing portfolio for label printing planned
• Reorganization of site leads to sale of area in St. Gallen to Baumer entrepreneurs with Gallus as anchor tenant

Heidelberger Druckmaschinen AG (Heidelberg) is further expanding its commitment to the growing label market. As part of this, the Gallus Group sites in Switzerland and Germany have already been strengthened through targeted investments and divided into competence centers. The next step will be to reorganize the headquarters in St. Gallen, Switzerland, and develop it into a competence center for digital label printing. To this end, the new customer demonstration center is to be opened at the site at the end of the year as the "Gallus Experience Center". The expansion of the digital printing portfolio will be accompanied by comprehensive innovations in equipment, service, software and ink. A total of around 160 people work in St. Gallen, including business and R&D management as well as finance, sales, service, marketing and purchasing. The new office infrastructure and the Experience Center will be reorganized in the main building of the site.

"With targeted investments in the Gallus Group, we want to gain further momentum in the growing label market," said Dr. Ludwin Monz, CEO of Heidelberg. "The reorientation of our site in St. Gallen into a competence center for digital label printing underlines the high strategic importance for Heidelberg in the packaging sector. We welcome, that the commitment of entrepreneurs Marcel and Roger Baumer will create an innovative environment in St. Gallen from which we can also benefit."

Baumer entrepreneurs from St. Gallen develop property into open industrial and technology campus with Gallus as anchor tenant

As part of the reorganization of the site, St. Gallen entrepreneurs Marcel and Roger Baumer will take over the entire area in St. Gallen with around 20,000 sqm on April 1, 2022. The brothers are the fourth-generation owners of the Hälg Group and have acquired the site privately. Gallus will continue to use the required space as the main tenant in this area in the future. A corresponding purchase and long-term lease agreement has been signed. Heidelberg expects the transaction to be completed in the first quarter of the 2022/23 financial year. The parties have agreed not to disclose the purchase price.

"The Gallus area is set to develop into an open campus for companies and institutions that are helping to shape the future and strengthen St. Gallen as a workplace. We are delighted that the Gallus Group, with its headquarters and Digital Campus, is the anchor tenant of the site," says Roger Baumer.

About Gallus

Gallus, with production facilities in Switzerland and Germany, is a global leader in the development, production of conventional and digital narrow web presses with a focus on label and packaging printing. The machine program is complemented by the wide range of screen printing plates (Gallus Screeny), a globally decentralized service and an extensive range of printing accessories and spare parts. Gallus brand products are sold via the global sales and service network of Heidelberger Druckmaschinen AG. The comprehensive range of services also includes consulting services from printing and process experts for all relevant printing and process engineering tasks. Gallus employs around 320 people, 160 of whom work at its headquarters in St. Gallen, Switzerland.

Home (gallus-group.com)

Important note:

This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates, and in the print media industry. Heidelberger Druckmaschinen Aktiengesellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.