Press maker Heidelberg is expanding its share structure to enable Chinese equipment manufacturer Masterwork to take a 8.5 per cent holding.

The company which once declared its intention to be the largest supplier to the newspaper industry - and came away from the sale of its web division with a 15 per cent share of Goss International - now wants to improve its position in the growing packaging printing segment.

The possibility of taking a share in long-standing sales partner Masterwork Group Co, and of having them manufacture parts for German-designed presses, is also being considered.

Based in Tianjin, Masterwork is China's largest manufacturer of die-cutters and hot-foil embossing machines. It would buy the shares under a cash capital increase from authorised capital excluding shareholder subscription rights, which is still subject to approval by Heidelberger Druckmaschinen's supervisory board. Heidelberg would gain a further strategic anchor shareholder with a long-term investment horizon as well as to strengthen its equity.

Subject to approval by the relevant bodies on both sides and the Chinese authorities, the capital measure should provisionally take place by the end of the first calendar quarter of 2019.

Heidelberg chief executive Rainer Hundsdörfer says the arrangement will lead to better capacity utilisation but stresses it will not weaken sites in Germany. We are delighted that in Masterwork we are obtaining another long-term investor that firmly believes in the company's innovative prowess, strategy, and potential for the future," comments Heidelberg CEO Rainer Hundsdörfer.

Pictured: The partners share stand space at DRUPA 2016