Roiling change in the media industry has been driving a need for intelligent alliances, and at this year’s Ifra Expo in Vienna KBA was a good example. Following its recent announcement of a strategic alliance with Indian press manufacturer TPH the two companies exhibited on a joint stand in hall B. And in tandem with the Beil Group on the stand opposite KBA also unveiled PlateTrans, an automated system for conveying the plates from pre-press to KBA’s compact Cortina and Commander CT presses.
Automated plate logistics with KBA PlateTrans
At KBA’s press conference on the first day of the show Beil Registersysteme managing director Stefan Kreitczik gave a briefing on the modular PlateTrans logistics system
(see four-page product brochure), which in many cases can also be retrofitted. Available in a choice of automation levels, the KBA PlateTrans system for plate feed and removal closes a previously existing gap between pre-press and press, relieves the operating crew of manual tasks during edition changes and boosts productivity and cost efficiency in high-volume newspaper production by increasing plate throughput. With KBA PlateTrans the misallocation of plates, which commonly occurs in practice, is virtually eliminated. Automatic plate changing, which can deliver substantial time and cost savings, particularly where production entails frequent edition changes, was demonstrated on a waterless KBA Cortina back at Drupa 2000.
26 compact presses with more than 1,000 couples
KBA and Beil have found a prospective Cortina user willing to test PlateTrans in a shopfloor environment. To date KBA has booked orders for 26 Cortina (waterless) and Commander CT (wet offset) press lines, or over 1,000 printing couples with PlateTronic automatic plate changing. Fifteen press lines incorporating 472 automatic plate changers are already in daily operation. A big 6/2 Cortina installation came on stream in the summer at Le Figaro in Paris. At the Südkurier in Constance, Germany, a 6/2 Cortina press line featuring a new energy-saving temperature control system is now pumping out the first freesheets and supplements, and the flagship title will follow in early March next year accompanied by a change of format. In a few weeks the Daily News in New York will fire up a big 6/2 Commander CT press line.
KBA: not just compact, but complete
KBA marketing director Klaus Schmidt emphasised that alongside these unique compact press types KBA has been busy driving advances in conventional newspaper press technology and optimising processes to meet emerging demands, eg for hybrid and semi-commercial production. Schmidt displayed copies of the new Turkish title, Haberturk (daily circulation: 300,000 copies), which since March this year has been printed in hybrid production on five 4/1 Commander presses at four separate locations. The layout and quality of the sample copies were impressive: the combination of coldset and heatset, different types of stock, high-quality adverts and colourful, web-oriented design gave a foretaste of the “daily news magazines” of tomorrow, which target younger sections of the population. Similar hybrid products are printed on a ten-tower Continent with two thermal air dryers that went live a few months ago at United Printing & Publishing (UPP) in Abu Dhabi. In addition conventional 4/1 KBA Prisma presses have been installed at DNA in India, and German newspaper publishers have placed orders for conventional tower and satellite versions of KBA’s Colora and Commander presses. Said Schmidt: “KBA is not just about compact presses – we offer a complete range.”
Economic crisis impacts on newspaper market and suppliers
“The crisis has also hit the newspaper market.” This was how Christoph Müller, KBA executive vice-president for web press sales, described the sudden slump in investment by newspaper publishers as the credit crunch started to bite. This year global investment (excluding Japan) in new newspaper presses will total just €400 million ($588m), compared to €520m ($765m) last year, which was itself poor, and €1.5bn ($2.2bn) in 2005, which was a good year.
While there are signs that the global economy has bottomed out, Müller sees no end in sight for the supply industry in 2010 and 2011 because there are so few contracts up for tender. Although the USA experienced the most dramatic collapse in sales, investment in Europe, Asia and even high-growth markets such as China and India has been substantially lower for two years. Big contracts like the one Transcontinental in Canada signed in the spring for four Commander CT press lines are a rarity on the global market. Investment has been paralysed by a number of factors which have left their mark on the supply industry. The transition to full colour has virtually been completed; circulations are in decline and many titles have reduced their pagination, which along with the demise of large numbers of freesheets has created spare capacity; modern presses have a much higher output, so fewer are needed; and printers have started sharing production plants. Financing difficulties in some countries amid the recent crisis have caused mounting uncertainty among many publishers as to the right course to pursue in the media jungle. And investments in online activities have not always proved profitable. Said Müller: “Most manufacturers have been battered financially. The probability of mergers and takeovers is rising and as a result press coverage of the German press engineering industry is dominated by speculation.”
Government: a potentially baleful influence on competition
KBA deputy president Claus Bolza-Schünemann pointed out that KBA’s financial status has remained exceptionally stable even though the volume of business has declined. Said Bolza-Schünemann: “This is not the only point on which KBA differs from its two big German rivals and certain foreign competitors. We are seeking entrepreneurial solutions to the consequences of the economic crisis. In this we are aided by the fact that we have no net debts, an above-average capital-to-assets ratio, a good level of liquidity and a positive operating cash flow, not to mention our broad market presence. Also, our shareholder base is not dominated by investors unfamiliar with the sector. KBA has been a listed company for 24 years, but conducts business like many other medium-size enterprises that do not call for government aid when the going gets tough.” But Bolza-Schünemann also stressed the potentially negative consequences of a merger between the two biggest press manufacturers, both from an industry and a competitive perspective. “If such a union is supported unfairly with a generous public dowry, jobs will be endangered at companies like KBA which have husbanded their resources wisely in good times and built up reserves for bad times.”
Print remains KBA’s core business
The announcement by president and CEO Helge Hansen of KBA’s proposed entry into new, high-potential sectors such as packaging, water conditioning or thermal solar energy technology had aroused the media’s interest and given rise to some consternation. Bolza-Schünemann emphasised that it was no good turning a blind eye to the ongoing structural changes in the print and media landscape. As KBA approaches its 200th jubilee it makes sense for the group to establish a second sphere of competence. As the sixth generation of the founding family, Bolza-Schünemann said: “Such a step will be undertaken with the same financial and entrepreneurial caution we have applied throughout our 192-year history. Innovative, high-powered technology for print in all its facets will remain a core KBA competence in the foreseeable future. We are confident that we can maintain our position among the top industry players, provided politicians and bureaucrats do not endanger fair competition.”