Big, Bigger, Biggest

Is bigger, better? Not always, but bigger is getting better, especially when it comes to wide-web printing presses.

Wide-web presses are a mainstay in the flexible packaging arena where many times, package size can dictate press size, especially when you throw in productivity and costs. But shorter and shorter production runs, combined with the ability of state-of-the-art narrow-web presses to run flexible materials, are providing other avenues for flexible packaging to be printed.

In this environment, wide-web press manufacturers are responding by making their big machines “light on their feet,” with an ability to respond to the needs of the marketplace. packagePRINTING talked to a number of executives from wide-web press manufacturers to get their view of industry trends and what their companies are doing to enhance the capabilities of their customers.

pP: How do you compete in the wide-web printing press arena? What makes your company distinctive?

Frank Passarelli, gravure product manager, Bobst Group—We are able to offer a full range of press models and at various levels of automation. Our presses are all designed to reduce job changeover times and to minimize the material waste. The full integration of the Bobst Registron automatic color-to-color register control equipment on all our gravure press models assures a very precise color-to-color register, but also keeps the web in register when ramping the press speed up or down.

Tom Jacques, area sales manager, North American Cerutti Corp.—Flexotecnica has been experiencing solid growth in key global markets—particularly in North America, Asia, and Europe—due to the consistent, reliable performance of its New Generation (NG) series of presses, launched in 2004. The NG series is distinguished by its ease of use resulting from the application of advanced electronic controls and its solid mechanical design, which has focused on optimizing operator motions and making each task ergonomically simple for multiple quick job changes per shift with minimal operator fatigue. Flexotecnica’s unique approach to customer care has been applied on a worldwide basis, which ensures that converters achieve the potential that the NG series offer them, year after year. By performing periodic check-ups of the presses in the field, Flexotecnica has helped converters maintain their presses in excellent working condition.

Rick Ruenzel, director of business development, Comexi—There are a variety of factors that make us a leader in the wide-web flexographic market. We are truly an international company with a presence in all major markets—and actively engaged in these markets. We have also made a significant effort to diversify our product offerings beyond flexo presses—e.g., slitter/rewinders, laminators, peripheral equipment—that allow us to provide complete solutions to customer needs and requirements. And we have always been highly integrated in our design and manufacturing capabilities—from the foundry to the finished product—so we can offer innovative, high-quality equipment to the packaging market.

Kurt Flathmann, VP and general manager, Fischer & Krecke—What makes Fischer & Krecke distinctive is the ability of our equipment to provide extraordinarily high throughput of the finest grade and quality printing, while producing minimal waste. Fischer & Krecke, established in 1880, has traditionally addressed the wide-web printing press arena for many years and it is one of our primary markets. Fischer & Krecke offers a broad range of flexo presses and has sold machines up to 136˝ web widths, and under the Kochsiek brand has supplied rotogravure presses in web widths of up to 14.75 feet, or 177 inches.

In a May 2007 event held at the Bielefeld, Germany headquarters, Fischer & Krecke introduced the Flexpress 46S-1k, the latest model of the Flexpress high-performance series. With a width 2350 mm (92.5˝) and a production speed of one km/min. (3,281 ft./min.), the huge new Flexpress 46S-1k is capable of an extraordinary output.

Hans Deamer, president, Windmoeler & Hoelscher Corp.—We compete by offering a top-quality range of reliable and advanced presses that meet the needs of the flexible packaging industry, and by offering the best after-sales support and parts service at a fair price. We never stand still and are constantly looking for ways to make our machines more productive and reliable and to further improve our service and parts support. We offer real, 24 hour, 365 day free-of-charge technical support and hot lines for emergency parts and on-site service.

pP: What packaging market segments do you see as solid growth opportunities for wide-web press manufacturers?

Passarelli—We principally expect continued growth in the global market for traditional flexible packaging, along with the decorative film market (such as shrink sleeves and shrink labels) and within the label segment.

Jacques—Currently, many Flexotecnica customers are growing in value-added segments, like laminated stand-up pouches for pet foods, lawn care products, and nutriceuticals. Many high-volume print jobs, by contrast, are being squeezed so much on margin that even with highly productive equipment, converters are wondering if it is even worth it to pursue them anymore.

Flathmann—There are growth opportunities in many areas of the wide-web market, whether it is in small companies with the opportunity to replace multiple existing older presses with a new single, extremely high-efficiency, fast-changeover press for greater profitability, or for larger companies that must drive down individual package costs with higher speed and wider width presses capable of extraordinary throughputs. Opportunities exist in many areas if companies are willing to invest in the technology that will provide the growth they desire.

Deamer—Flexible packaging is growing at a rate of 5 to 7 percent per year with long repeat overwraps, shrink labels, and other areas showing especially strong growth. Some of these are specialized, which call for press features such as high production speeds, long repeat lengths, or in-line processes.

pP: Is the market trend toward shorter production runs impacting the selling environment for wide web presses? What are you doing to allow your presses to economically accommodate shorter production runs?

Passarelli—The trend towards the shorter production runs is real and has been with us for a number of years. One solution that we have introduced to make short runs economically viable is the Rotomec MW press. MW stands for “Minimized Waste”. The MW press is offered with either a 24 or 32 inch web width. The amount of web inside the press has been drastically reduced—slightly more than 150 total feet of web length in the press—to help reduce material waste during job set up and press stops and starts. The press uses sleeve-type printing cylinder bases, to help reduce the overall cost of the cylinder, storage area needed, and transportation costs. Due to our highly efficient dryers, the energy costs are also reduced. Finally the press comes equipped with a high level of automation to aid in a consistent and short time frame for job changeovers.

Jacques—Absolutely. Flexotecnica customers are profiting from the fact that they can produce short run jobs more efficiently because the equipment is optimized for the operator to do just that.

Ruenzel—Shorter runs would tend to equate into more demand for presses; however, the gearless sleeve presses are very efficient and one new press can replace two older CI presses. The net result is that there is growth, but not in any dramatic sense. And a considerable amount of the demand is for 10-color presses, which represents a significant investment that not all companies can afford.

In terms of technical features to facilitate job changeovers, automated wash-up, pre-register, and impression settings are all features that we offer and should be considered. And we make a concerted effort to design our presses to be ergonomically efficient in layout, function, and operation. In this respect, I think we build an “operator’s press” which is to say, easy to operate. This is a key concept—as the presses become more technically advanced and sophisticated, the greater the need to simplify their set up and operation.

Flathmann—F&K’s wide-web, gearless, sleeve-based, super high-speed presses are all engineered for rapid changeovers. They are offered with a range of fast changeover capabilities to address various customer requirements. As an example, our Access® system allows a significant reduction of changeover time and increases productivity by giving printers the ability to safely perform makeready on non-operational print units for the next job while the press is running. This feature provides dramatic reductions in changeover times.

Also facilitating rapid changeovers, Fischer & Krecke Flexpresses are equipped with Autoclean®, our system that automates wash-up—the most laborious and unpleasant job for printing press operators. With this system, the whole process can be safely and efficiently accomplished in ten minutes—completely automatically—allowing operators to focus on other items in the changeover process.

pP: What are you doing to help make your press lines more affordable for customers?

Passarelli—Industrialization within our design and construction processes to identify customer needs and specifications in great detail helps to assure that the customers’ requirements are met, thus eliminating the supply of features and parts that are not required. We stay away from “multi-purpose presses” because in today’s competitive environment, most of our customers’ goals are to improve productivity and often this means specific press requirements. The one size fits all philosophy of the past is no longer valid.

Jacques—By focusing on operator effectiveness, Flexotecnica users typically experience a more rapid return on investment. Additionally, being cost competitive by optimizing the design allows Flexotecnica to offer a lot of value for the money.

Ruenzel—As I mentioned earlier, Comexi has a highly integrated manufacturing facility for the production of our CI presses—we design, cast, machine, and assemble all of the major mechanical components in-house. This means that we have a certain measure of control over the manufacturing process and this helps us to produce equipment that is economically feasible in the marketplace, while maintaining the highest quality standards. So, by “affordable”, I would suggest that we are value-driven and are constantly striving for greater efficiencies in production, as well as the procurement of materials and components related to our plant and the equipment we manufacture.

Flathmann—We recently introduced the Flexpress 6 S. The new modular design, assembly line production methods, a complete configuration requiring limited options, and expanded production capabilities allow F&K to offer the Flexpress 6S at an attractive price with the short delivery times demanded by many printers.

Deamer—Frankly, while our press business in the U.S. and globally has never been stronger and is setting records for our company, prices have never been more under pressure. It’s the “Walmartisation” of our industry. We have radically changed the way our business is run at our major plant in Germany and have reduced costs and increased efficiency significantly. We have also, after a global investigation, opened an additional good-sized plant in the Czech Republic so we can take advantage of the lower costs offered there, while at the same time taking advantage of their tradition for engineering and quality along with skilled labor, all of which is only a few hours drive from our plant in Germany.

pP: What geographic areas do you see as the best opportunity for sales growth? What is your company’s global strategy?

Passarelli—The areas of sales growth are essentially the emerging markets, such as China, India, Pacific Rim, Eastern Europe, Mexico, and South America. Mature markets such as Western Europe and the U.S. are not expected to show any considerable growth going forward.

Jacques—North America, Asia, and Europe continue to be key growth areas for Flexotecnica. Our global strategy is to continue our organic, sustainable growth by ensuring our customers are successful. The fact that many Flexotecnica customers have invested in multiple presses over the years is a testament to this sound global strategy. Flexotecnica’s goal is not to be one of the biggest (in volume), but rather, one of the best in quality and customer satisfaction and profitability.

Ruenzel—Developing countries such as China, India, and the former Eastern Bloc are obvious candidates but, as we have an established international presence, I am not sure this is strictly a matter of geographical imperative. For example, although North America is a mature market, we are very intent on building our presence here because it is a good match with our diversified product mix and overall philosophy. In addition, it offers not only many mainstream opportunities but also a significant number of niche markets.

Flathmann—All geographic areas provide the opportunity for sales growth. It is less a question of the geographic area than it is a question of what the markets of each region require to improve their efficiencies and profitability. With an export rate of approximately 90 percent, we have always been responsive to the needs of the markets we address anywhere in the world. Our corporate strategy is to ensure that we are aware of the needs of the markets we serve and address those needs with equipment capable of achieving the efficiencies that will ensure the profitability our customers desire.

Deamer—North America is our largest market and we will do all we must to maintain our market position here, but we do see significant growth potential in the Middle and Far East, Africa, and the Baltic and former Russian countries. South America also offers some growth potential although this has lagged behind expectations over the last few years because of the political situation in some of the states.

pP: What are some of the key industry trends that you anticipate will have an impact on your business in the next several years?

Passarelli—Several trends are worth noting. These include: competition from emerging markets, with China and India in particular; the need to control costs; and presses designed to effectively reduce operating costs and increase productivity.

Jacques—Key industry trends include the advancement of electronics and press automation, continued growth in convenience foods and single serving packets, and the global competitive pressure felt by many converters from Asian suppliers.

Ruenzel—The ability to incorporate technology into finished, viable products will continue to be a challenge—and, most importantly, an opportunity for future growth. This is not always self-evident—we have invested a considerable amount of resources into EB technology over the past several years. Although we are seeing some very encouraging developments and benefits in this area, much work still needs to be done.

I also think that the continued consolidation of this industry will require further integration with processes and equipment. As a company, we are undergoing a major change in this area with the implementation of SAP.

On a different level, process integration will relate to the ability of a company to produce a wider range of products, on demand, in varying quantities, and at the highest level of quality and customer support. Inevitably, this will also require more investment in equipment and technology, as the demand will grow for a given printer to not only print but also extrude, laminate, and convert product under one roof, in a timely and cost-effective manner.

Flathmann—A core issue presented at the recent Flexographic Technical Association Forum in Montreal, Canada is the reduction of environmental impact by the processes and components of manufactured goods, including packaging.

In April at the Uniprint Knauer GmbH package printing facility in Aichstetten, Germany, Fischer & Krecke introduced its first CI flexo press, the FLEXPRESS 16S WetFlex™, engineered for commercial application of Sun Chemical’s process. WetFlex is a solvent-free, environmentally friendly printing process that delivers extraordinary print quality without the environmental impact of solvent- or water-based inks, and without the requirement for pollution control equipment.

Deamer—It is very difficult to predict the future but certainly the growth of potential competition from the Far East and other low-labor-cost countries is a threat to our and just about every other industry. I truly believe that you “get what you pay for” and certainly with machinery, while the price may be lower and the machine of OK quality, how does that help you when the machine breaks down and you need parts and service? Downtime on production machinery is very expensive! I believe the quality of machinery, packaging, or any other product from the Far East or other low-cost manufacturing areas of the world will get better. However, I firmly believe that response, service, technical support, and delivery times will enable good, flexible Western companies to compete as long as they see the threat and react by doing all they must to reduce costs and increase efficiency and productivity. This must be done while staying right on top of advanced technology by investing heavily in research and development as our company does.

pP: What is the biggest competitive threat your company faces?

Jacques—Complacency by converters that have not invested is a general threat to the supplier base. Fortunately, as loyal Flexotecnica customers continue to grow and prosper, we will be there along side them. Whoever has not invested yet, or will not invest soon, will not be around much longer in this industry.

Our challenge is to continue our organic growth by attracting talented people who are willing to work hard and do what it takes to help our customers be successful. Our philosophy has always been that if we help our customers prosper, they will allow us to share in their continued growth.

Ruenzel—The flexible packaging industry can be characterized as offering custom products at commodity prices. Big box stores, globalization, etc. have brought this issue into sharper focus. As the squeeze on profits works its way down the food chain, our company is faced with the same relentless pressure to become more efficient and productive. At the same time, the demand grows for us to provide greater service and technical support for our equipment. There are many reasons for this, but we are taking on greater responsibility for operator training and equipment maintenance that traditionally was being done by our customers. We accept this, but it has a cost.

Deamer—One of the big threats to the flexible packaging industry and hence to our business is the “knee jerk” reaction to the perceived environmental threat of plastics. Instead of educating the public and developing practical recycling programs, the tendency is to try to ban plastics in packaging. … Plastics are very visible and can certainly damage the environment, but the real solution is to educate the public about the benefits of plastic packaging and proper disposal and to develop realistic recycling programs. pP