IPEX 2010 Blogs - Andy McCourt Number 6

From Chinese whispers to shouts, Andy McCourt has all the goss on Goss.

One press conference I was really looking forward to was Goss, and it did not disappoint. Goss is so associated with all that is good about print media. Freedom of the press, country newspapers and images from 40s black and white movies where the screen goes all whirly and as it slows down, there is the headline of that day’s newspaper “Kane attacks Able” or something like that.
 
When Fred and Sam Goss started their company in 1885, Wyatt Earp was still cleaning up the town of Tombstone and outlaw wanted posters were a source of extra revenue for newspaper printers. Then space-shuttle builders Rockwell bought the Chicago/Preston UK company in 1969 and all their electronic wizardry became available to Goss. Rockwell sold out in an MBO and Goss started a joint venture with Shanghai Electric in 1993, to enter the then fledgling China market.
 
In 2009, Shanghai Electric made a strategic investment in Goss, by now having assimilated Harris web and getting stronger in heatset commercial print. Fast forward to Ipex 2010 and it is announced that from 1 June, Goss will be 100% owned by Shanghai Electric. But who is this dragon taking on an institutional American bear?
 
Shanghai Electric has annual sales of around USD$8 billion and is involved in Energy, Transport, Electromechanical, Environmental and Print/Packaging industries. It owns Akiyama, which gives it one of the most underrated 5/5 B1 perfectors in the industry – the J-Print 440. One of these was installed at SOS Print Group, Sydney in 2008. Purlux web finishing systems are also part of Shanghai Electric’s mix as well as Rotary screen presses, flexo machines and packaging units. This company knows printing.
 
So in assessing Shanghai Electric’s purchase of Goss, we have to look at the long-term relationship already there; the good fit into the portfolio of print technologies and the inevitable conclusion that, without moves like this, independent niche-sector manufacturers will find it harder and harder to do well in world markets, especially China.
 
Even though Goss entered commercial heatset, packaging and sheetfed (yes, with the Folia press shown at Drupa printing 30,000 B1 sheets per hour), People still think of them as a newspaper press company.
 
Take the Sunday press – it has been adapted for packaging to compete against flexo and known as the Sunday Vpak. Aimed squarely at folding cartons, flexible packaging and labels, this 1.9 metre-wide offset machine features variable repeats and quick-change sleeves. This offset machine takes on flexo, and that’s not an easy thing.
 
The Sunday 5000 96pp (or 2 x 48pp) press takes on gravure, at 2.86 metres wide. Four sales are either under installation or negotiation in Germany and Italy and it would appear to be a press that could find some acceptance in the Australian catalogue market.
 
The Shanghai Electric purchase of Goss provides excellent synergies to both companies and is sure to strengthen Goss. Whether manufacturing remains in Chicago and Preston (UK) remains to be seen but the support infrastructure needed worldwide would indicate that, with further sales successes, Goss and Akiyama will continue to grow and find renewed success under Shanghai Electric.
 
And maybe it will be Australian iron ore being cast in those huge blast furnaces to make the biggest of ‘big iron’ used in our industry.