Agfa sales chief in Australia ahead of new company structure

On a lightning visit to help restructure the local Agfa organization and represent head office at PrintEx07, the Belgian-based vice-president global sales, outlined the challenges and opportunities involved in the transformation of the iconic company in the years ahead.

Agfa Graphics is about to be launched on the stock market as one of three separate Agfa companies: Agfa Graphics, Agfa HealthCare and Agfa Materials. Each company will operate as a separate corporate identity with Agfa Graphics likely to achieve the largest capitalisation. It currently accounts for 50 per cent of the Euro3.4 billion turnover of the combined company.

According to Op De Beeck, the move will improve the positioning of the company allowing it to pursue strategic objectives with direct access to capital markets and the autonomous use of its own cash flow. The process will be completed by the end of the year.

Agfa Graphics is basing its future on two enterprise opportunities: prepress solutions and industrial inkjet. Op De Beeck envisions its success will depend on achieving cost leadership, market leadership and technology leadership. The latter requires heavy investment in Agfa’s CtP technology with the development of eco-friendly solutions such as ThermoFuse. It will also focus the company on developing its industrial inkjet business, which Op De Beeck sees as “the next technological frontier.”

One of the major challenges facing the company and the sector is to recoup the rising cost of aluminium used in printing plates, which has soared 80 per cent in the past two years. Despite some resistance in some countries, Op De Beeck confirms a steady acceptance of the increase in plate costs in most markets. He maintains that Agfa has not lost any major business because of its price increases last year and is continuing to grow its market share.

One of his earnest messages to printers is to ensure they recoup any increased cost in printing plates by getting market value for their scrap aluminium plates in disposal. The scrap value has kept place, if not exceeded, the rise in the cost of aluminium on the metals exchange. In recent times it has increased by 80 per cent. Used printing plates represent a substantial source of revenue for printers, which is often not fully realised.

Having one of the largest ranges of plates suitable for all printing purposes in the industry is one of Agfa Graphics great strengths, says Op De Beeck. It allows the company to add value through its logistics and warehousing. The printing and newspaper industries are notorious for not subscribing to any ‘universal’ plate sizes. And with the advent of digital plates there is less possibility of manufacturers making a single size and cutting on site to suit.

The company’s offering is promoted as a total solution and is positioned around its industry pioneering workflow, Apogee X. This is one of the major strengths of Agfa and is currently driving a substantial portion of the printing industry’s prepress. Visitors to PrintEx07 will be able to see the latest developments in the software.

Despite the changes in the market and the advent of digital printing Op De Beeck is optimistic about the future of offset printing and Agfa Graphics role in it. He believes the next few years will see the company reach its true potential as vibrant, global, stand-lone graphic arts supplier.