Print price war pushes PMP into SA and QLD closures

Price pressures in the heatset web market are behind PMP's decision to close down some operations in Queensland and South Australia.

Hot on the heels of the unexpected and secretive departure of former CEO, Brian Evans, the closure of PMP’s heatset operation at Salisbury South, South Australia and the decommissioning of its Rotoman 8 Press at Wacol, Queensland, has thrown 76 printing industry people out of work (32 in Queensland and 44 in South Australia).

Acting CEO, Richard Allely, defended the move as necessary in order to keep PMP afloat in the face of toughening financial times.

“We expect increasing price pressure as the worsening economic conditions reduce demand in an already highly competitive market,” Alley said in a statement.

“Optimising PMP Print’s most reliable and best-performing presses will deliver much-needed cost reduction benefits in the second half of the year.”

Allely was not available for comment and a spokesman for the company would not disclose what would happen to the existing presses.

PMP’s decision has been criticised by the Australian Manufacturing Workers Union, who are currently working together with both management and employees while the closures take effect.

Steve Walsh, federal secretary for the printing division said that the union was “disappointed with the decision”, adding that it had negotiated with PMP late last year to allow some of its staff to take extended leave before Christmas. Many employees arrived back at work only to find that they no longer had a future with PMP.

“These staff have had to return to this news,” Walsh said.

It is yet another blow to web printers in South Australia following the (second) closure of Stateweb late last year.

Walsh said that the chances of staff finding new employment was tough.

“The whole industry is going through some uncertain times and people who have lost their jobs will find it hard to get another job in the printing industry,” he said.