Esko-Graphics bails from commercial printing

“The Commercial Printing market is served by many suppliers and shows little or no overall industry growth”, said Kim Graven-Nielsen, President and CEO. “Fierce competition leads to price pressure and low margins. It becomes very difficult for us and for many other offset CtP suppliers to maintain a sustainable business in this segment”.

He claimed that despite more attention and endorsements for violet CtP from the industry, the market development so far has been constrained by the limited availability of plates. “Considering both these elements, we have decided to stop further investments into our PlateDriver violet CtP product line and to direct our efforts towards growth areas where we have a strong product position.”

In the Commercial Printing segment, Esko-Graphics will concentrate on SCOPE workflow software, on smaller format CtP devices for polyester and violet plates, and on Espresso, the company’s innovative 4-up Computer-to-UV-Plate (CtUP) system.

“When asked by customers for advice on what strategy they should adopt, we have a straightforward answer: understand the drivers of your business, make clear choices, build innovative extensions to your existing strengths, and help your customers reduce costs and create value.

“We follow exactly the same principles for Esko-Graphics. We see the rapidly changing market dynamics in the graphics industry, and have evaluated the feedback from the many people visiting us at drupa. We now make the choices that will best serve the interests of our company and its customers, and that will keep Esko-Graphics at the forefront of the industry”.

Esko-Graphics’ will refocus its distribution organization for commercial printing towards its expanding OEM and reseller channels, carrying the DPX, PlateDriver Compact, DotMate CtF and EskoScan product lines. The company will continue to offer customer services for the installed base of all hardware and software products, directly or through distribution partners.

More focus on Packaging

Esko-Graphics’ Packaging activities currently account for over 60% of its revenues. Sales are growing strongly in all regions and have increased by 11% over the first half of 2003.

“Packaging is our major flagship today”, comments René Delbar, Senior Vice-President Marketing. “We have earned an industry reference position with unique value-adding solutions, and with many products that are leaders in their respective segments.”

The company’s CDI platesetters image over 90% of the digital flexo plates used worldwide. More than 1,700 Kongsberg sample making and digital conversion tables are installed in 50 countries.

“The Packaging market is a healthy and growing business environment, attracting many new customers. We have decided to put more focus and resources towards this booming part of our activities, to grow and expand it even further”, concludes Delbar.

Distribution and service to the Packaging markets will continue through Esko-Graphics’ direct sales organization, as well as through qualified resellers around the world.