Hubergroup, the printing ink manufacturer with over two centuries of history, is facing a period of radical transformation. The company, which has sales of around 813 million euros in 2022, is announcing 300 redundancies in Germany, among other major changes, in order to cope with a rapidly changing market.
European printing ink market in decline
The Group, which employs 3,300 people in 28 countries, intends to reduce its dependence on the printing ink sector, and in the long term turn to the production of raw materials for the chemical industry and inks for the packaging industry.
In recent years, the market for printing inks, which has long been a mainstay of the company, has suffered a significant reduction, having halved between 2016 and the first quarter of 2023. The covid-19 pandemic, supply problems, the war in the Ukraine and a number of "unfavorable political conditions" in Germany and Europe precipitated this fall.
Growth in printing inks has shifted from Europe to other markets, notably Asia, where experts expect growth of 5.2% a year to 2031, cites Hubergroup.
Job cuts and relocation of production
Specifically, series production at the Celle plant in Germany will be discontinued. The site will concentrate on production and service for the German-speaking market, on application technology for flexo and gravure printing, and on spot colors. Around 250 jobs will be lost.
Volumes produced at Celle will be transferred to Wroclaw in Poland and to the Group's Indian plants by the end of 2024, in order to reduce global overcapacities and "increase capacity utilization close to customers and suppliers".
At Hubergroup's second plant in Germany, in Kirchheim, the administration and R&D departments of the offset and chemicals divisions will be downsized, corresponding to 50 fewer jobs.
Hubergroup is not the only player in the printing ink sector to face major challenges. The Français Brancher, a 180-year-old company, was liquidated last April .
These events testify to the profound upheavals currently affecting the printing industry, and the crucial importance for industry players to adapt quickly to new market realities.
