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HERMA Expects to Crack the Benchmark of Euro 300 Million in 2015

Published on 2015-12-15. Author : SpecialChem

Demand for self-adhesive materials, labels, and labeling machines from HERMA continues strong worldwide. After a good financial year 2014, the self-adhesives specialist expects to report excellent numbers once again. “Regarding sales, we will probably crack the magic mark of 300 million euros this year. This is considerably more than we had planned”, reported HERMA managing directors Sven Schneller and Dr. Thomas Baumgärtner at the company’s staff meeting in Filderstadt, Germany. In 2014, HERMA generated sales of € 282 million, and planned to increase that number by merely 3.5 percent. “We will probably more than double this targeted growth.” In accordance, the company is currently stepping up its search for new employees. “Until late 2016, we are expecting to employ a staff of nearly 1,000 in the whole HERMA group. Compared to late 2014, we will have created a total of about 120 jobs”, says Schneller.

HERMA
Fig. 1: HERMA

The managing directors referred to the expected result for 2015 as “respectable”. Considering this good fiscal year and expecting more healthy growth, the company felt encouraged to already start demolition, dismantling, and construction at the newly acquired area in Filderstadt in 2017 – provided that all relevant permits are obtained until then. “Planning is already underway”, announced Dr. Baumgärtner to the workforce. “Amongst other things, the Labeling Machines division will then finally be able to get the space it needs to safeguard its further growth in Filderstadt.” The Deizisau location, where the Labeling Machines division is currently situated, will be closed in the medium term – probably not before 2019. HERMA works council chairman Thilo Matt was positive about the plans for the new area: “We know that this will require a lot of responsibility and discipline. Yet the prevailing feeling is happiness about the chances that present themselves.” He announced that the works council would negotiate a reconciliation of interests and a social compensation plan for all employees affected by the move from Deizisau to Filderstadt.

US market increasingly important

The managing directors are worried about the strong price increase for the important raw material paper as well as considerably increased personnel costs. “We anticipate that both these factors will negatively impact the result in 2016”, warned
Schneller. Explaining the sales boost in 2015, Schneller and Dr. Baumgärtner named economic momentum in some markets as the reason – especially for self-adhesive materials, which are used as the basis for labels worldwide. Moreover, thanks to the introduction of a synchronized production line for labeling machines, the Deizisau location was able to increase its capacities and optimally meet the strong customer demand. “In addition, we are currently gaining a firmer foothold in the gigantic US market, especially with our Labeling Machines division.”

About HERMA

Located in Filderstadt near Stuttgart (Germany), HERMA GmbH is a leading European specialist in self-adhesive technology. In the 2014 fiscal year, the HERMA Group generated sales of € 282 million with 873 employees in three divisions – Self-adhesive Materials, Labels and Labelling Machines. The export ratio was approximately 57 %.

Source: HERMA

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