Koenig & Bauer is continuing to proceed with its transformation from a traditional manufacturer of machinery into an agile technology group. Using global megatrends and intense discussions with customers and industry experts as a basis, the company has defined its strategic direction for the next few years. The course it is already taking towards more digitalisation and a higher degree of modularity will not only lead to more success in Koenig & Bauer’s core business markets, with packaging printing at the forefront – it will also result in less material and energy being used in printing processes, making them more sustainable. In addition, Koenig & Bauer is also setting itself sustainability goals that are even more ambitious with its new Group strategy, ‘Exceeding Print’. Along with its responsibility towards its customers and employees, as a member of the UN Global Compact, the world’s largest sustainability initiative, the Group aims to increase even further its efforts to deliver on its ecological, social and community responsibilities.

A commitment to sustainability goals for the future

“By 2025, we are aiming to reduce CO2 emissions in our production plants by 75 per cent, and intend to be completely carbon-neutral from 2030 on,” as CEO Dr Andreas Pleßke announced. “As the industry’s leading provider of sustainable solutions, we help our customers to reduce their ecological footprint. Solutions based on technology that we developed reduce energy consumption, cut waste, and decrease ink and coating consumption, helping to cut CO2 emissions.” 

Energy efficiency and climate protection

Koenig & Bauer uses an energy management system to prepare the ground for its customers to be more energy efficient in printing operations, and helps them to point their production processes in a sustainable direction. As a member of the 4evergreen Alliance network, Koenig & Bauer can start working with manufacturers of paper and cardboard, folding carton producers, brand owners, technology and material suppliers, along with the collection, sorting and recycling industry, at an early stage to find appropriate solutions. Koenig & Bauer maintains a partnership with ClimatePartner to promote efforts to compensate CO2 emissions by supporting certified projects to protect the climate. Moreover, the company is a partner in the ‘BlueCompetence’ sustainability initiative that is run by the VDMA, and is the first manufacturer of printing machinery to become a member of the ‘Healthy Printing’ network. 

Modularity: The key to more efficiency

Koenig & Bauer is the only manufacturer of machinery worldwide to master all industrial printing process on all substrates in its core markets. Customers benefit from a wide range of products, the experience, and the technical expertise that the company has built up over the more than 200 years of its history. As the oldest manufacturer of printing machinery in the world, Koenig & Bauer has always considered its role to be that of an industry pioneer and an innovative force.

A modular platform for future machine generations offers customers any number of advantages. “Not only are new technologies ready for the market more quickly, but integrated control of machines and systems, and the standardisation of maintenance become possible,” as executive board member and COO Michael Ulverich accentuates. “The modular principle ensures that the customers continue to benefit from tailor-made solutions. The standardisation of a number of elements opens up more opportunities for innovation and individualisation – while maintaining the same high quality at the same time.” Koenig & Bauer intends to maintain its entrepreneurial independence in future by retaining a high level of vertical integration – from the smallest gearwheel to complex units.

Digitalisation: Group-wide solutions, tailored to the customers

In addition to machines, digital services are becoming increasingly important for networking machines with each other, collecting and analysing data, and controlling processes efficiently. Koenig & Bauer develops digital services based on highly scalable cloud platforms and makes them available to customers via a portal for collaboration. The analysis of machine data forms the basis for evaluating performance, setting benchmarks and industrial analytics scenarios. In combination with machine learning, this renders Koenig & Bauer able to identify potential malfunctions in processes much earlier and more accurately, and to initiate service and maintenance fully automatically. Unplanned downtimes can thereby be reduced, and service intervals can be modified accordingly. 

“Koenig & Bauer made the switch to a cloud-based Customer Relationship Management (CRM) platform, a leading industry product, back in 2010,” adds Ralf Sammeck, executive board member for the Sheetfed segment and CDO. “Across the Group, Sales, Service and Marketing, along with the adjacent functions, all use the CRM application, which also provides performance data for the machines connected within the network.” This allows the employees of Koenig & Bauer to provide advice to customers which satisfies their expectations each and every time they are in contact. “Software is driving our transformation from a manufacturer of machinery to a technology company,” as Sammeck continues. “Our customers benefit from the consistent process integration and from data-optimised job management processes that use data as a basis.”

Short makeready times and flexible processes in packaging printing

High-performance digital presses from Koenig & Bauer offer customers in packaging printing new business models for printing very short runs, rapidly changing requirements, security elements, track-and-trace solutions, as well as personalisation and individualisation. The focus is on the entire value chain with a view to optimise costs. Easy-to-use human-machine interfaces make operation more intuitive for customers. Koenig & Bauer is responding to the trend towards hybrid printing processes in the paper, board, corrugated board and film segments by combining analogue and digital printing and finishing technologies. This allows the advantages of both applications to be exploited optimally, broadening the range of substrates that can be printed on. By entering the food and beverage carton industry, Koenig & Bauer will enable full-colour digital printing on carton packaging in future.

“Digital printing processes will be a catalyst for new business models,” as Christoph Müller, executive board member for the Digital & Webfed segment, is convinced. “We are assuming that most of the companies that will be our customers in future have not even been founded yet.”

We support social responsibility and diversity, and reject discrimination

More diversity within the company in relation to gender, age and internationality has, as a social objective, also been adopted as part of Koenig & Bauer’s strategic blueprint. One key focal point is the advancement of women, for example through mentoring and career programmes, and by introducing wide-reaching measures to reconcile family and career, as well as initiatives to combat discrimination and racism. “Our goal is to be a top employer for everyone,” as Pleßke underscores. As a company with regional roots, Koenig & Bauer has assumed social responsibility from the very beginning. As has been the case for over 150 years, the company continues to train future skilled workers at its own vocational school, and guarantees employment after they have completed their apprenticeships. Koenig & Bauer supports cultural and social institutions at its Group sites and around the world. 

CFO Dr Stephen Kimmich is convinced, “By committing to deliver on our ecological, social and community responsibility, we are sending an important signal to the capital market. Koenig & Bauer is the only manufacturer of printing machinery to master all industrial printing processes on just about every type of substrate – even on corrugated board – and supplies software, systems and service for entire printing and finishing processes. After all, optimising the ‘Total Cost of Process’ forms a key factor, more than ever, for our customers in any decision about which technology to purchase. This also gives the company good reason to consider itself a ‘trusted advisor’ for its customers and an agent of change and innovation within the print industry. ‘Exceeding Print’ will contribute to the achievement of our financial goals for the medium term, which earmarks turnover of €1.3 billion and an EBIT margin of more than 7 per cent.”

“Our ‘Exceeding Print’ strategy allows us to promote sustainability as the greatest challenge that the packaging industry will be facing in future, and uphold our claim to leadership when it comes to digitalisation,” says Dr Andreas Pleßke, summing up the measures that were decided on. “This means organic growth with our own business models and products, but does not rule out growth through acquisitions.” 

•       Quality standards have risen throughout the business

•       10% - 12.5% projected growth for 2021

Watford, 14.10.21
When Porth based, Beatus Cartons took the decision to invest in a Rapida 106 7 colour plus double coating press. It was their first significant investment in capital equipment for over 20 years. The business, whilst always successful, was about to make a huge jump in technology and performance with brand new press manufacturer. Naturally there was apprehension in the 81-year-old family run folding carton printing business. However, after overcoming a steep learning curve and a global pandemic, the business has undergone a major transformation in performance and quality and promises much more for the future.

Beatus Cartons Managing Director Clive Stinchcombe states: ‘The investment in the press is the best decision we have ever made. We are +40% above the previous production plan for the existing press and we have been able to both win new business, and secure our existing clients due to the technology that we have on the press. Without the investment in a new press it is debatable that we would have been considered for some of these contracts.'

'After a difficult period during the pandemic we are now anticipating that we will see growth of between 10% and 12.5% in 2021 and new doors are open to us now we that have the right equipment in place. He adds: ‘We have improved our product portfolio, won new customers and made significant capacity improvements.’

He continues: ‘Observing the productivity improvements that the new press has brought has changed our thinking about the future for Beatus Cartons. We were sceptical that we could achieve the levels of performance suggested by Koenig & Bauer but we are very pleased to say that we are achieving those numbers now. We will never wait another 20 years before investing in new press technology again’

Project Manager Andrew Butler adds: ‘Once the operators adapted to a new way of working with the press technology and its colour control system they became very confident that they could “print to the numbers.” Make readies have improved and running speeds are much higher due to the confidence on our short run jobs as the QualiTronic ColorControl system removes the doubts that the operators have and updates the colour values far quicker than they can adjust manually.’

He adds: ‘Our operators now prefer to run the Rapida as they are very confident that they can perform all the demanding tasks required of them at much higher speeds. Our quality throughout the company has improved as all jobs are approached in the same way and we have a large amount of repeat work which is exceptionally good on the Rapida as we recall all the previous settings and load them back onto the press. We are normally in colour within a few sheets.’

On the subject of support Mr Butler states: ‘We’ve never encountered a problem with the availably of engineers in the event of a call-out and we use Koenig & Bauer’s online service support which ensures that when we do have a problem we get support online very quickly’.

Precision engineering

Beatus Carton’s Rapida 106 features 7 printing units and 2 coating units allowing a broad range of effects and finishes to be produced in one pass. The press has a top speed of 18,000 sheets per hour and can print with both UV and conventional inks and coatings. Additionally, the press comes equipped with a whole host of features that enable the highest of performance and quality levels. Commenting on one example of Koenig & Bauer’s precision engineering. Andrew Butler states ‘We recently had to print a tight registered, nine colour job and pass through the press twice. We felt very nervous about doing it but with the SIS (Sensoric infeed system) we needn’t have worried, it was perfect.’

Koenig & Bauer U.K. Ltd Director of Sales Chris Scully stated: ‘We were delighted to have Beatus Cartons on board with us as new customer when they originally selected us as a partner for their ambitious business growth plans. We are thrilled to see that they have continued to grow their business despite the challenges of the last 2 years and that the press continues to perform the high levels that we advised that it would. They continue to attract new customers and their quality levels are second to none. He adds: ‘It is clear that the Rapida 106 is the benchmark for litho presses for the UK packaging market. However, it is not just the about the press technology, we also have to ensure that our customers are supported throughout and I am very pleased that we have been able to form a very productive, close partnership over the last few years.’

•       Production increased by 25%

•       Unrivalled quality control systems

•       'Almost instant response from Koenig & Bauer service team'

Watford, 01.07.21
Edenbridge based, the Alexir Partnership has become the latest high quality U.K. packaging producer to invest in a highly specified Rapida 106. The press, an 8 colour with 2 coating units was installed into their Edenbridge factory early in 2020, just as the pandemic was beginning.

The Alexir Partnership is one of the leading names in packaging production, both in the U.K and around the world. They have been operating for over 30 years from 2 production sites in the South East of England. They produce high quality cartons for well-known high street brands and for a range of market segments which include food, healthcare and FMCG (Fast Moving Consumer Goods).

They selected the Rapida 106 after extensive research, field visits and print tests at all the major press manufacturers. The Alexir Partnership is also a member of the International Packaging Group Association which provides a framework for packaging producers to meet and share technical information on packaging manufacturing and best practice.

During these meetings they found that several other members of the group had recently invested in Rapida 106 technology with great success. The press was specially configured to cope not only with their current work types but also to allow the Alexir Partnership to target new markets and to offer the most advanced print options to their clients.

These benefits contribute to the uniqueness of their ‘design-to-delivery’ capabilities in the UK. They are also unique in the fact that they are the only wholly ‘Employee Owned’ major Packaging and Food Manufacturer, having purchased the business from the Shareholders in 2019.

Speaking about the installation, Alexir Factory Manager Andy Crack states: ‘We have become incredibly busy since the press was installed and production has increased by 25% since 2019. The pandemic and the trend for plastic reduction has created a big increase in demand on our carton production volumes. Managing the installation, reorganising the factory to improve the workflow and the restrictions on staffing during this time has been a challenge but we have coped really well. The print quality from the press is very good and due to the quality assurance tools supplied with the press we have experienced a big reduction in quality issues'.

He continues: 'We took one press out and the Rapida has coped not only with the work from that machine but also a big increase in additional demand for our production capacity as well. We have had to invest in new pile turning equipment to keep the press fed with fresh pallets and a good deal of our work is now printed on both sides’.

Commenting on the level of service support Mr Crack states: ‘Throughout the installation and when issues have arisen since, the service department of Koenig & Bauer have provided an almost instant response which is particularly pleasing. We anticipate further growth in business which will increase our impression counts further but we fully expect the press to cope with the extra volumes required from the production department’.

Precision engineering

The Rapida 106 is a special configuration press called a ‘Plus 1’. It features 7 printing units and a coater, 2 drying units followed by another additional printing unit and a final coater unit allowing the widest range of effects and finishes to be produced on a press. The press has a top speed of 18,000 sheets per hour and can print with both UV and conventional inks and coatings on a special sheet size of 780mm x 1060mm. Additionally, the press comes equipped with a whole host of features that enable the highest of performance and quality levels.

Heavyweight performance

The stock range the press can handle is up to 1.2 mm thick and additionally for non-stop running of the thicker stocks produced at Alexir Packaging the press is equipped with an extensive logistics package for both the feeder and delivery and a press raise of 900mm. To aid feeding at the highest speeds, the press is equipped with Koenig & Bauer’s unique Sensoric Infeed System (SIS). For food production, the press has been supplied with food safe oils and greases and will run with food safe inks and coatings.

Make ready automation

For rapid changeovers, the plate changing is fully automatic, with all plates changed in less than 2 minutes and coating forms are also changed semi-automatically in less than one and a half minutes. Colour control is via Koenig and Bauer’s QualiTronic ColorControl inline colour measurement system which automatically updates the colour values after every tenth sheet. For assessment and scoring of the printed results against the requirements of the I.S.O. 12647-2 standard, the press is also equipped with QualityPass software. This software will also provide a trend of the CIE Lab values for each job alongside a whole host of other reports for colour and quality.  

Quality Controlled

To provide an extra level of quality to the work produced on the new press it is equipped with QualiTronic PDF which enables comparison of the printed material to an original PDF. Every single sheet produced for each run is compared against the original during running and the operator receives early warning of any defects found by the system.

Data captured

To ensure production is kept at the highest levels, the press software package includes LogoTronic Professional. Signals are taken directly from the press and provide the basis for production monitoring of each job produced. This provides a good overview of press performance and allows the press to receive and send JDF data from pre-press and back into a management information system. Colour reports, maintenance manager and the press colour library are also hosted within this system.

Koenig & Bauer U.K. Ltd Director of Sales Chris Scully stated: ‘We could not be more delighted to have added the Alexir Partnership to our growing list of high quality packaging printers who have made the switch to producing their cartons on the Rapida 106. They have developed a superb and successful business and we are thrilled that we have played our part in their continued growth.’ He continues: ‘Packaging businesses have been put under considerable pressure since last year and have had to work in very difficult circumstances. It is no surprise to us that the Rapida 106 has coped with the increase in volumes and I am also very pleased that our service department has stepped in quickly to support the team at Alexir when they were required to do so.

•       •     Investment bolsters capacity and improves efficiencies

•       •     Koenig & Bauer are the ‘preferred partner’ for SF Taylor

Watford, 01.07.2021
Stockport based, SF Taylor have extended their ‘preferred partner’ relationship with Koenig & Bauer by investing in a new Rapida 75PRO 5 colour press with perfecting capability. The press is set to be delivered in September 2021, is an updated version of their first Rapida 75PRO which was installed in 2015. It marks a large re-investment into the company.

SF Taylor specialise in delivering a hybrid manufacturing and print management service as well as a communication and creative design functions. They are a leading supplier to the NHS and having expanded into working with private sector clients, continue to evolve. They have recently invested in both I.T. with their own brand; HubTec; a central command suite for creating web2print, templated and on-brand collateral, alongside improvements to their existing infrastructure to ensure that they remain the market leader in their sector. The latest litho press investment allows them to bolster their capacity and improve efficiencies for clients.

SF Taylor Managing Director Simon Young states: ‘Koenig & Bauer are our preferred partner for printing presses and we have a strong relationship built on the successes we enjoyed with the first press we purchased. We often host customer visits and demonstrations in our factory to show people what the machine can do and the last investment in a Rapida 75PRO has contributed significantly to our business growth since 2015. He continues ‘We consider ourselves a ‘hybrid business’ providing solutions for our clients across a range of disciplines including manufacturing, communications and creative design – essentially an extension of your marketing team. However, print is still a significant part of our offering and with this latest investment we are ensuring that we have the capacity to respond to growing customer demands, not only from our existing clients, but also our continued growth in the private sector’.

Ideally specified

Due to the successes of the first press the specification for the latest version remained the same. The press is configured to handle lightweight materials and can run at speeds up to 15,000 sheets per hour. Colour and quality is controlled automatically using Koenig & Bauer’s ErgoTronic ColourDrive with lab option for special colours. From a sustainability point of view, the press is configured to run without IPA from the outset and for fast change overs the press has semi-automatic plate changing and simultaneous washing of blankets and impression cylinders.

Koenig & Bauer U.K. Director of Sales Chris Scully states: ‘We are thrilled that SF Taylor have returned to Koenig & Bauer for another Rapida 75PRO. Their business continues to evolve into other areas and we have really enjoyed our role in the company’s growth so far. We have a very strong partnership and this latest investment has borne this out. The new press investment will ensure that SF Taylor can meet their clients demands for both capacity and quality and we look forward to playing our part in their future successes once again'.

Watford, 21.06.2021
Harrison Packaging has become the first U.K. company to invest in a highly specified Rapida 106X, the largest investment in the company’s history. The press, an 8 colour with 2 coating units will be installed into their Stockton on Tees factory in late January 2022, an exciting year for Harrison Packaging as they celebrate 140 years in business, making them the oldest independent carton manufacturer in the U.K.

Harrison produces packaging products for a diverse range of customers and brands in several markets including beauty, healthcare, food and beverages. The company has recently invested in new die cutting and CAD equipment and has already committed to new CTP equipment for delivery this Summer.  They are heavily committed to programmes for sustainability and manufacturing excellence alongside an increasing focus on the development of the Harrison team.

The company invested in Rapida 105 technology in 2008 when they purchased a seven plus coating press and they have now returned to purchase the brand new Rapida 106X which was released during Virtual Drupa in 2020.  The press has been specified with the aim of increasing capability and providing significant technical and commercial advantages.  It is capable of printing with both conventional and UV inks along with water based and UV coatings.

The team at Harrison visited a number of major press manufacturers prior to the pandemic and performed extensive tests along with a detailed analysis of their existing and future requirements. They also listened to advice on emerging trends in the packaging industry before making the decision to partner with Koenig & Bauer again.

Speaking about the investment Managing Director, Mike Baum added ‘This was the most involved investment process we have ever undertaken and after a diligent comparison between equipment from a number of reputable manufacturers, our team decided that the Koenig & Bauer option would enable Harrison to take the biggest step forward at this point.  The new technology the press boasts will ensure that our print process becomes faster and more agile, delivers greater efficiency and produces much less waste, all critical in us providing a sustainable future for all those associated with Harrison. 

He continues 'Initially, the press will replace an existing 6 colour B1 press, although when the press reaches the levels of output we expect, we anticipate removing another of our older presses.  Our 5-year plan is one of significant growth and this press will create sufficient additional capacity to ensure Harrison maintains the levels of flexibility and response we have become known for.  We are very excited to see the new machine installed and look forward to working with the team at Koenig and Bauer to maximise the potential for this ‘game-changing’ press’.

Groundbreaking Features

The Rapida 106X boasts a radical new design with sleek black printing units, new touch screens and LED press status alerts for the operator and is equipped with a whole host of labour-saving features and technologies to ensure only the highest quality of print is produced.  The press has a top speed of 20,000 sheets per hour and incorporates a host of features aimed at reducing downtime.

Heavyweight Performance

The machine can handle stock up to 1.2mm thick and additionally for nonstop running is equipped with an extensive logistics package for both the feeder and delivery and a press raise.  To aid feeding at the highest speeds, the press is also equipped with Koenig & Bauer’s unique Sensoric Infeed System (S.I.S.).

Make Ready Automation

For rapid changeovers, the plate changing is fully automatic, with coating formes changing semi automatically.  Colour Control is via Koenig & Bauer’s QualiTronic ColorControl inline colour measurement system with a brand new ErgoTronic Console equipped with LED, D50, or D65 illuminants.

Quality Controlled

To provide an extra level of quality to the work produced on the new press it is equipped with QualiTronic PrintCheck, which enables comparison of the printed material to an ‘OK’ sheet.  Each sheet produced is compared against the original during running and the operator receives an early warning of any defects found by the system.

Data Captured

To ensure production is kept at the highest levels, the press software package includes LogoTronic Professional.  Signals are taken directly from the press which then provide the basis for production monitoring for each job produced.  This provides an overview of press performance and allows the press to receive and send JDF/JMF data from pre-press and back into a management information system.  Colour reports, maintenance management and the press colour library are also hosted within this system.

Koenig & Bauer U.K. Director of Sales Chris Scully states: ‘We are delighted to have Harrison Packaging as our first customer in the UK to purchase the Rapida 106X and to have them as a returning customer.  Like ourselves, they have a long history and have continued to innovate as a business. This is the biggest investment in their history and they have invested in technologies and know how that will set them apart from their competitors’. He continues ‘The Rapida 106X not only looks fantastic but it has been designed to provide our customers with the ultimate in performance and quality, alongside unrivalled labour and waste saving features’.

Watford, 14.12.20
In April 2019, Norwich based Castle Colour Packaging installed a Rapida 106 7 plus coater as part of a significant companywide investment strategy which has improved efficiency, increased capacity and met the demands of a new market place. The press has been in operation for eighteen months alongside other major investments throughout the business, in both technology and people, and the company is pleased with progress to date.

Speaking about the impact of the investment Mark Ferguson, Managing Director at Castle Colour Packaging states: ‘The press investment was a significant part of a wider business development strategy. We started by identifying new potential markets in which we felt we could offer excellent service, innovation and support to customers whilst achieving sustainable growth. Our business is built on supporting our customers and this is achieved through 3 foundation pillars; our people, our processes and technology. Each area was carefully reviewed, and an investment plan was agreed for all three areas.'

‘The investments enabled us to achieve our growth targets in year one and continue that in the current year. In 2018 we entered the luxury packaging market and following significant investment in training and recruitment alongside processes and technology we have been successful in winning new long term business. We are delighted to have been short listed for the Luxury Packaging awards 2020. Our aim is to become our customers best supply partner and we have a relentless drive to make improvements in every area of our business to achieve that aim.'

He continues: 'Consistent investment in training and development of our team play a substantial role in helping our business to maintain momentum. We have worked closely with the BPIF and our latest apprentice printer completed his City and Guilds qualification in January 2021. We have a one recent graduate, and three others who are due to graduate this year with level 5 diplomas in Principles of Leadership and Management, again achieved through BPIF training programs.'  

'The new press has improved our quality, throughput and capability and challenged us to think differently about how we plan as well as our efficiency expectations. In comparison to the press it replaced the Rapida 106 has increased throughput by 68% and we are particularly pleased with the improvement in make ready times. We have been able to reduce our shifts on other machines through the efficiencies that the Rapida 106 has been able to deliver. In addition to the new press, Castle Colour has also invested in its MIS, pre-press, CAD, foiling, and additional manufacturing space. 2021 sees further investments in technology and additional warehousing space to keep up with output from the Rapida 106.'

Koenig & Bauer UK Sales Director Chris Scully states: ‘The achievements in growth at Castle Colour Packaging are a great example of how a well thought out investment strategy and the focus and commitment from both customer and supplier can bring great rewards. Increases in growth, quality and throughput would be on all company’s wish lists when making an investment in a new machine, so we are delighted that the Rapida 106 has delivered in all three areas and allowed the business to grow, evolve and expand. Castle Colour Packaging join a growing list of companies who have effortlessly made the switch to Rapida 106 technology and further improved their businesses on the back of their investment.

Watford, 30.11.20
When southeast-based, high-quality carton manufacturer Offset Print & Packaging chose to invest in an Ipress 144 K large format cut and crease machine from Koenig & Bauer Iberica and an Omega Allpro 145 folder gluer from Koenig & Bauer Duran in January 2020, the world had little knowledge of a new virus emerging that would have the potential to change many businesses forever.

Ten months on, and despite challenges of managing the installation and ensuring the business continued operating safely and efficiently during lockdown, Offset have continued to boost sales following the investment, with the past two months seeing an almost twofold increase from the same time in the previous year.

Managing Director of Operations Vince Brearey: “The company has enjoyed amazing growth over the past five years by looking at forecasted sales growth and investing in the right technology to suit.  Offset added a new Rapida 106 6-colour plus coater in 2017 and, whilst this allows us to print more efficiently, the amount of work-in-progress in post-press was also beginning to increase.  This was why we made the double post-press investment with Koenig & Bauer”.

Vince continues: “Not only are can we get our work out more quickly with the additional capacity for folding, gluing and large format cutting and creasing, we have also reduced bottle-necks in the factory caused by work-in-progress.  In addition, we are able to offer blanking for the first time which enables us produce work more efficiently.”

The addition of blanking has also meant investment in a state-of-the-art waste-extraction system (custom-painted in Offset Print & Packaging livery!) which ensures large-format die cutting, stripping and blanking can now be carried out at the highest speeds in-line.

Speaking about the ease of use and quality of the new machines Vince adds: “The build quality of both machines is excellent and we are happy about how it has progressed.  Our operators are experienced with similar equipment from other manufacturers but they have become quickly proficient on the new machines.  In particular, the setup of the folder-gluer is simple and our finishing minders are already producing some demanding large-format crash-lock products with ease. We have a long history with Koenig & Bauer and the additional post press equipment has strengthened that relationship further.’

Koenig & Bauer UK Sales Director Chris Scully: “Offset Print & Packaging have made some shrewd investments over recent years, both in print and post press. The successes that they have enjoyed have come from a sound growth strategy that is now really paying off and setting them apart from their competition.  We are delighted that we continue to play our part of their ongoing successes.”

With its strategic focus on the growth market of packaging, Koenig & Bauer is on track to reduce the dependency on politically volatile und lumpy security printing business by increasing revenue and earnings in this area. Through the acquisition of Iberica and Duran, the joint venture with Durst as well as various partnerships in the software field, the portfolio for packaging printing markets was expanded further. Following a testing phase of the CorruCUT sheetfed flexo press for analogue direct printing on corrugated board, the prestigious pilot customer and development partner Klingele accepted the newly developed machine after a demanding factory acceptance test. The machine is now producing in two shifts at the Klingele plant in Delmenhorst near Bremen, Germany. With the CorruFLEX order from Thimm Packaging Systems, Koenig & Bauer received a strategically important follow-up order in corrugated board printing. Interprint ordered the third RotaJET for digital decor printing. After the sixth press sale for digital decor printing and the key order from Tetra Pak for digital full-colour beverage carton printing, the RotaJET digital printing platform is particularly successful in the market. The service initiative launched in 2016 is also bearing fruit. The service revenue share in the Koenig & Bauer group increased significantly from 25.9% in the previous year to 28.2%.

CEO Claus Bolza-Schünemann: “The end markets we address are fundamentally intact with packaging printing showing good structural growth. However, growth requires normal business years. Due to the increasing economic uncertainty, we decided to invest significantly in reducing manufacturing costs and to join forces more strongly within the group. With these measures, we aim to position ourselves to a greater extent independent of the economy and more competitively for the future.”

Dr Andreas Pleßke, the Management Board member responsible for the Performance 2024 programme explains further details: “With the Performance 2024 programme, we are currently targeting reducing costs by over €70m by 2024 with one-off costs of €30m to €40m. We expect the package of measures to be expanded further. The focus of the various projects aimed at optimising group-wide structures and processes is on considerably reducing manufacturing costs to achieve a significant improvement in the earnings situation in the new machine business. This includes design-to-cost projects, purchasing optimisations and some further measures. Bundling tasks as shared services as well as the reduction of holding costs and SG&A expenses are also on the agenda.”

CFO Dr Mathias Dähn adds: “In addition to the cost-cutting projects, the efficiency programme aims to reduce lead times in assembly and accelerate customer acceptance. In addition to shorter delivery times, this will lead to a drop in working capital and a cash flow improvement. Moreover, we work with further activities and a sophisticated controlling of all measures with permanent monitoring on the significant reduction in working capital. We see considerable potential for improvement, particularly in security printing in terms of inventories and receivables through optimised sales management and stepping up export financing. The comprehensive package of measures also aims at a more even distribution of revenue over the year in the Sheetfed segment.”

Business performance in 2019 in the Koenig & Bauer group

Not all expected orders in security printing and metal decorating were awarded in 2019, therefore order intake and order backlog of €1,141.3m and €533.7m respectively were below the figures for the prior year (€1,222m and €610.9m respectively) favoured by the major Egyptian order. With €1,218.5m, group revenue reached the level of the prior year (2018: €1,226m). Earning were burdened by high investments in the growth offensive 2023. While a lack of profit contributions due to delayed or shifted contract closings and higher costs in order processing further reduced earnings, one-time income had a positive effect. On balance, a margin of 4.6% was achieved with EBIT of €56m (2018: €87.4m and 7.1% respectively). At €38.4m, group net profit (previous year: €64m) translates into earnings per share of €2.31 in 2019 (2018: €3.86). In view of the significantly increased uncertainties caused by the corona crisis, the Management Board and Supervisory Board will propose to the annual general meeting to suspend the dividend payment for the financial year 2019 and to carry forward the retained profit generated by the holding company Koenig & Bauer AG to new account. The fundamental policy of distributing 15% to 35% of group net profit remains unaffected.

Business performance in 2019 in the segments

In addition to the strong service business, more orders for large- and medium-format presses led to growth in order intake in the Sheetfed segment of 8.9% to €625.3m (2018: €574.3m). Compared to 2018 (€615.9m), revenue increased by 2.6% to €631.8m. The slightly lower order backlog of €183.4m compared to the previous year (€189.9m) remained at a good level. Due to the product and regional mix and higher order processing costs, EBIT of €19.4m was below the figure from the prior year (€35.4m).

In Digital & Web, order intake of €144.9m was 18% below the prior-year’s figure of €176.6m. In addition to the shrinking web offset service business, lower orders in flexible packaging printing were the main reason for this decline. Revenue increased by 7.4% from €153.3m to €164.6m. On balance, the order backlog decreased from €85.8m to €66.1m at the end of 2019. The EBIT of –€16.5m (previous year: –€10.2m) was burdened by high market-entry and growth-related expenses as well as the negative result in flexible packaging printing.

In the Special segment, order intake of €406.7m was below the prior-year’s figure of €505.1m, which was impacted by a major order in security printing. After €491.5m in the previous year, revenue of €463.9m was achieved. Order backlog at the end of 2019 was €287.3m (31 December 2018: €344.5m). As a result of the lower revenue, product mix and unexpected project expenses for the major security printing order, EBIT amounted to €43.9m after €48.2m in the previous year despite one-time income.

Above-average balance sheet ratios

In addition to the high investment expenditures and the dividend payment, cash flows were influenced by one-time effects such as the significant capital lock-up resulted from the major Egyptian order. Accordingly, cash flows from operating activities of –€7.9m and free cash flow of –€52.3m were below the prior-year figures (€66.3m and –€19.5m respectively). The long-term credit facility syndicated by renowned banks is strengthening the group’s stability. In terms of balance sheet ratios, the Koenig & Bauer group is well-positioned with an equity ratio of 34.3%.

Guidance for 2020

CFO Mathias Dähn: “Even before the outbreak of the coronavirus, global economic conditions were demanding. Given the daily worsening global economic situation due to the coronavirus, the impacts on our company and the achievement of our planning are currently completely open. For 2020, we are planning to achieve a largely stable group revenue compared to the previous year and the prior year's EBIT level without the around €10m in special expenses from the efficiency programme. Managing the possible consequences of the corona crisis is currently a top priority.”

Figures at a glance

The Annual Report can be downloaded as a PDF file from here.  

•       Colour managed and controlled

•       Sustainable print

Watford, 03.03.2020
Rapida 105 LED UV user Blackmore has recently completed the rigorous testing process and achieved the prestigious BPIF Colour Quality Management Certification Scheme’s ‘Professional Certificate’. Whilst many schemes for colour measurement and control are used around the world, the BPIF version is one of a handful of schemes where there is a requirement to have internal processes assessed by a 3^rd party auditor. In this case, UKAS are the chosen auditors which means that these certifications are globally recognised.

Describing the process, Production Director Nigel Hunt stated: “We understand that 80% of printers who apply for certification fail on the first audit due to the presumption that they would get some guidance during the assessment process. We were made aware that the auditor is there purely to observe the processes you have in place and provide feedback at the end. Therefore, we had to consult with a few suppliers in advance such as Sun Chemical’s Kevin Purdy to ensure our processes were up to scratch. We already have great control of our colour management but this was an opportunity to re-evaluate what we do and I am delighted to say we passed in all areas.”

Describing the process, he continues “The auditor takes sheets every 300 sheets during a 3000 sheet run and these form the basis of the evaluation from the print side of things. To keep the colour consistent we use QualiTronic ColorControl, the inline colour control system on the press. Additionally, we print using LEDUV on the Rapida 105 which means that we don’t have to concern ourselves with the effects of dry back of the colours; an important requirement of the standard.”

Blackmore Managing Director Andy Robbins states: “We have already received a number of enquiries in relation to our certification from new and existing clients. We have an excellent reputation for providing high quality print. However, for us to make the statement that we are an officially accredited printer rather than stating we are “working to the requirements of ISO 12647-2” is a real bonus for us and our customers.” He adds “We have other accreditations for sustainability such as the Kodak Sonora Green Leaf Award and we have accreditations for ISO 9001, 14001, 18001 and we are also FSC certified.

Continuing on the subject of sustainability Mr Robbins adds “Our press is running zero alcohol and we use very little waste due to our colour management processes. Additionally, the press uses LEDUV drying which means we use a fraction of the power required to dry our sheets that traditional litho presses require. With this accreditation we can now offer the complete package of sustainable, and certified high quality print.”

Koenig & Bauer UK Sales Director Chris Scully states: “We congratulate Blackmore on their recent successful audit and accreditation. Their print quality has always been first class and the fact that they have achieved this using the Rapida 105 LEDUV press and its colour control equipment makes us feel especially proud. They now join an exclusive group of Koenig & Bauer press users in the UK who have had their print output certified by an external auditor and passed with flying colours.”

Speaking about the new direction for the business, Qualvis Print and Packaging Sales Director Richard Pacey states “We have re-focussed our strategy on value added packaging in a broad range of markets rather than pure volume work in predominantly food sectors. We are now fully able to explore the possibilities of our Rapida 106 and make recommendations to our customers that can elevate their brands packaging and offer them something a little bit different. We have become trusted advisors to them in a partnership approach. We have come up with some really exciting products and effects on the press whilst allowing our customers to reduce the impact of their packaging on the environment.”

Mr Pacey continues: “The Rapida 106 has been critical to our success. The service, support and print quality over the whole of the last 4 years has been fantastic. We recently had to produce a job for a prestigious client on a highly textured material and the quality of print we got from the Rapida was exceptional. We know that this result would be difficult to achieve on a different press. Additionally, we get lots of repeat jobs in shorter batches and we need a press that can give us the same consistent result every time. We can also be very flexible in being able to print with both UV and conventional inks and coatings dependent upon the brand requirements.”

Highly commended print

The 3 jobs submitted for the Performance excellence awards were 3 case studies:

Job 1: A biscuit pack that reduced plastic by 90% whilst maintaining product integrity. The smaller packs reduced the carbon footprint by half, grew sales for the brand which meant an improved market share for the client. The make ready for the job was completed in just 13 minutes and waste for the job was 4%.

Job 2: Qualvis were tasked with developing a new range of “luxury sustainable packaging” A cosmetic products carton which was traditionally printed on metpol board, this product was substituted for a fully recyclable cold foil solution. The packs were printed in both UV and conventional inks and coating and colour consistency and control throughout the run was superb.

Job 3: A luxury cosmetics pack which was traditionally produced a rigid box design. The client wanted to convert it to a more sustainable flat folding carton design but maintain the luxury feel of the product. The product was printed with UV inks and matt varnish with a high resistance to scuffing. A total of 200,000 sheets were produced with just 0.81% of waste and an average speed of 14,000 SPH.