UPDATE 1-Germany's Manroland files for insolvency


* Manroland says incoming orders slumped dramatically

* Says customers have trouble getting financing

* Owners Allianz, MAN failed to find investor

* Rival Heidelberg's shares jump almost 15 percent (Adds details, background)

FRANKFURT, Nov 25 (Reuters) - Manroland filed for insolvency on Friday after its owners Allianz Capital Partners and MAN SE failed to find an investor before the world's No.3 printing machine maker ran out of money.

Shares in its top rivals, Heidelberger Druckmaschinen and Koenig & Bauer

"The decision to file for insolvency was triggered by another dramatic downturn in incoming orders which can be noticed since mid-July and has recently accelerated," Manroland said in a statement.

It said its customers were finding it more difficult to obtain financing after the global financial crisis.

Manroland, Heidelberg and Koenig & Bauer are the largest players in the industry, but they have been hit by a shift in demand to online media and a slump in corporate investments in new equipment in a weak global economy.

Other major competitors include Japan's Komori, Ryobi and Mitsubishi.

Sources had already told Reuters on Thursday that Manroland's filing was imminent after talks with a potential investor unexpectedly failed. Banks then refused to extend a loan, leaving Manroland unable to pay its bills.

"It is especially bad that the wages for November cannot even be paid anymore, so shortly before Christmas," Manroland labour boss Alexandra Roessel said in a statement.


Manroland, which has about 6,600 employees and generated sales of 942 million euros ($1.25 billion) last year, has posted losses for several years, and its owners have already written off most of their investment in the company.

Juergen Kerner, Deputy Chairman of Manroland and a representative of union IG Metall, called on politicians to intervene and for Allianz and MAN to offer financial support to Manroland to help safeguard jobs.

"The three world market leaders are from Germany, and the industry overall is in big trouble. Far-reaching support from politics is indispensable," he said in a statement.

Heidelberg, the world No.1 maker of sheetfed offset printing machines, has seen its market value collapse to about 300 million euros from more than 2.5 billion euros as it posted several years of losses and cut one in five jobs.

Its shares soared for a second day on Friday, trading 12.1 percent higher at 1.46 euros by 1350 GMT. Koenig & Bauer shares were up 10 percent at 11.00 euros. ($1=0.7506 euros) (Reporting by Alexander Huebner; Writing by Maria Sheahan; Editing by Mike Nesbit)



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