HERMA's Labelling Machines division shipped more than 3,000 labellers for the first time in 2015. "This performance confirms our emergence as the global market leader in the premium quality segment," proclaims head of division Martin Kühl. Sales advanced by about ten percent as a consequence, reaching the record amount of around €42 million. Furthermore, the growth shows no sign of abating. The self-adhesive technology specialist has founded its first subsidiary in the US focusing exclusively on the distribution of labellers and labelling machines. "Our existing sales partners are reporting strong demand for HERMA's labelling technology in North America," explains Kühl. "At the moment, significant growth is being fuelled by the healthcare sector in particular, where highly complex challenges and customised solutions are commonplace. Customers in this market therefore wish to deal with us directly." HERMA USA is resident in Fairfield, New Jersey, where excellent connections exist with both customers and local sales partners. The company is to commence operations in July 2016.
Growth in all product areas
With the specialty machines that are regularly demanded by the healthcare sector, HERMA posted double-digit growth rates worldwide last year. But the standard machine and labeller product segments also achieved substantial advances in 2015. Kühl says that the livelier healthcare business was only one of several factors that contributed to the rise. Equally significant was the close collaboration with machine manufacturers who order individual labelling units from HERMA's modular range, for integration in complete packaging lines. In addition, the continuing international orientation of the business was exerting a favourable influence. Apart from cultivating their markets, the existing foreign subsidiaries have also become centres of excellence within the HERMA Group. "We can therefore push ahead more efficiently with developments in defined fields and respond faster to emerging customer wishes," comments Kühl. HERMA UK for example, continue to develop products for the food industry utilising stainless steel for the machine framework alongside some special machines for the Healthcare sector that complement those manufactured in Germany. These are in addition to the very successful range of machines developed for the coatings industry and labelling units for retrofitting onto other packaging machines.
Major investments
The growth is reflected in a further increase in the division's profitability. As Martin Kühl points out, "We have invested considerably during the last two years in optimising manufacturing processes, including in lean manufacturing for standard machines, and most recently in an entirely re-engineered labeller production line." In the coming three years HERMA will be investing a further amount of around €100 million in a variety of projects, including a brand new labelling machine plant in Filderstadt, Germany. It will also be adding more premium products to its range to coincide with the leading trade fair Interpack 2017. "Once again, we will be presenting a number of pioneering labelling solutions and underscoring our claim to technology leadership," comments Kühl.
