Sandwiched uncomfortably between global market leaders and small, highly specialized producers, Herma is a medium sized labelstock manufacturer producing some 700 million square meters of product per year, and selling almost entirely in Europe. At its main plant in Stuttgart the company recently inaugurated its new two-meter wide coating line, modestly described by Herma CEO Sven Schneller as “the most up to date in the world.”
When the new line was nearing completion in 2007 the company went on record as saying the extra capacity would enable it to burst through its production ceiling and capture new markets. That was before the current crisis had everybody revising their sales estimates downwards. It might take some aggressive salesmanship – and/or price cutting – to keep the new line fully occupied.