(Corrects headline and lead to show that Heidelberger
Druckmaschinen is shutting down its production of finishing
machines, not folding machines)
FRANKFURT Aug 6 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
amortisation (EBITDA) of at least 8 percent in its financial
year 2015/16, Heidelberger Druck said.
($1 = 0.7484 Euros)
(Reporting by Maria Sheahan; Editing by Kirsti Knolle and David