PBL on the look out for new print plant
In three year’s time, PBL Media will begin printing ACP Magazines itself; but a decision on the location of its new print site for the venture is only weeks away.
PBL put an end to months of ongoing speculation this week by announcing plans to commence printing magazines itself. In a statement, Ian Law, Chief of PBL said that:
“We have undertaken an exhaustive analysis of the printing options available to us and it became clear during the process there were compelling reasons to take control of the production of our publications.”
Three potential print sites have been identified for the company, located in western Sydney and rousing curiosity further over IPMG’s greenfield site in Warwick Farm.
“Most of the costs related to the establishment of the facility will be funded through long term leases of land, buildings and equipment and there will be little demand for up front capital,” Law said.
Five new presses and bindery equipment have been confirmed to be installed in the site, according to Law. “The new technology available will deliver significant financial and operational benefits to the company when it is fully operational.”
The news is a massive blow to PMP, which prints the majority of ACP’s magazines, but also no doubt affects other businesses including Rotary Offset, which prints the 700-page trade publication, Deals on Wheels; Rhodes printer, The Quality Group, which prints Rolling Stone, and Korean company, Dai Nippon, which prints Women’s Weekly cooking books.
PMP has managed to cover itself for the next few years by signing a three-year extension to its printing contract with ACP Magazines on more favourable pricing terms and guaranteed volumes. In addition, the contract will revert to a five-year print agreement if ACP does not proceed to a Greenfield site within the specified timeframe.
“The improved contract with ACP provides PMP with ample time to migrate its printing capacity to alternative market segments. A key strategic objective for PMP has been to further enhance its leadership position in the growth retail catalogue segment, which is growing in excess of six percent per annum,” Evans said.
Ian Law was not available for comment beyond the press release issued to all media.
PBL put an end to months of ongoing speculation this week by announcing plans to commence printing magazines itself. In a statement, Ian Law, Chief of PBL said that:
“We have undertaken an exhaustive analysis of the printing options available to us and it became clear during the process there were compelling reasons to take control of the production of our publications.”
Three potential print sites have been identified for the company, located in western Sydney and rousing curiosity further over IPMG’s greenfield site in Warwick Farm.
“Most of the costs related to the establishment of the facility will be funded through long term leases of land, buildings and equipment and there will be little demand for up front capital,” Law said.
Five new presses and bindery equipment have been confirmed to be installed in the site, according to Law. “The new technology available will deliver significant financial and operational benefits to the company when it is fully operational.”
The news is a massive blow to PMP, which prints the majority of ACP’s magazines, but also no doubt affects other businesses including Rotary Offset, which prints the 700-page trade publication, Deals on Wheels; Rhodes printer, The Quality Group, which prints Rolling Stone, and Korean company, Dai Nippon, which prints Women’s Weekly cooking books.
PMP has managed to cover itself for the next few years by signing a three-year extension to its printing contract with ACP Magazines on more favourable pricing terms and guaranteed volumes. In addition, the contract will revert to a five-year print agreement if ACP does not proceed to a Greenfield site within the specified timeframe.
“The improved contract with ACP provides PMP with ample time to migrate its printing capacity to alternative market segments. A key strategic objective for PMP has been to further enhance its leadership position in the growth retail catalogue segment, which is growing in excess of six percent per annum,” Evans said.
Ian Law was not available for comment beyond the press release issued to all media.