Australia's biggest trade printer CMYKhub is exiting the UK on Friday, citing a change in strategic direction with a focus on its Australasian businesses, coinciding with a lease ending, as the reason.
The company established an Indonesian business nine months ago, DFlow, which it is aiming to grow, and it is looking at entering the New Zealand market. Indonesia is seen as a huge growth opportunity, with one of the world's biggest populations and millions of young people currently in university.
Trent Nankervis, CEO of CMYKhub said, “The closure of our UK business is one of the steps in our strategic focus on other opportunities within the Australasian region."
CMKYhub entered the British market five years ago when it took over midlands-based trade printer RCS.
In a statement the company emphasised the closure of CMYKhub UK is not due to financial issues. “It was triggered by our current lease agreement ending in May and followed a detailed assessment of future growth opportunities in the UK based on asset reinvestment requirements, limited revenue returns in a market with aggressive competitors and high cost inputs.”
The company has come to an agreement with UK trade printer Where The Trade Buys (WTTB) for it to handle the CMYKhub customer list, which numbered around 1000 printers. WTTB is owned by Precision Printing which has a $50m turnover. It will also buy the CMYKhub Scodix. Its KBA offset press and various finishing equipment will be sold separately.
All CMYKhub UK staff will receive full entitlements under their redundancy, and all creditors will be paid in full. There are some 20 staff on the books, a handful will transfer to WTTB.
CMYKhub is Australia's biggest trade printer, with manufacturing in virtually every state.