Patrick Bolan, president and CEO of Toronto-based Avanti Computer Systems, has been appointed to the Advisory Council of the Graphic Communications Management (GCM) Program at Ryerson University. As a member of the Advisory Council, Bolan will be involved in curriculum review, as well as developing a Masters program and R&D links with industry. Avanti is a Toronto-based developer of “Business Management Software” (commonly referred to as Management Information Systems) that run commercial and in-plant print facilities.
In business for more than 23 years as an MIS-focused applications developer, Avanti now has over 400 installations, including high-profile clients like the United Nations, University of Illinois, Best Buy, City of San Diego, Paramount Pictures, R.R. Donnelley, U.S. Senate and, in February 2007, the United States Government Printing Office. In July 2007, Bolan was named to PrintAction’s annual listing of Canada’s 50 Most Influential People in Graphic Communications. In addition to Bolan and GCM’s Chair, Dr. Abhay Sharma, other standing members of the board include: Richard Armstrong, Jack Baraczek, Bob Cockerill, Michael Collinge, Andrew Dunkerly, Marie Eveline, Don Gain, Tony Galasso, Winfried Gleue, Ann Grant, Bob Hayes, Michael Hill, Dr. Hadi Mahabadi, Michael Makin, Guy Manuel, Terry Pitchford, Nancy Sobhy and Dr. Patricia Sorce.
Over the past few months, Avanti has hired two high-tech veterans to its senior management team. Blake Medulan joins the company as director of Technology and Development, bringing over 16 years of experience with enterprise application companies. He developed Web-based applications and key delivery systems for clients like Microsoft, Intel, Bell, Nokia and Disney. Medulan will oversee all product development, quality assurance and internal Avanti Systems infrastructure.
Bill Meikle also joined Avanti as director of Client Services, bringing over 12 years of experience with organizations like Kana Communications, Delano Technology, Talisma and Rogers Wireless. Meikle will lead both the implementation team and the support team at Avanti.
A few weeks after KBA celebrated its 190th jubilee in Germany, the group’s North American operations announced Holger Garbrecht as its new president and CEO, replacing Ralf Sammeck, who has been promoted to executive vice president of worldwide sheetfed sales and a member of the Management Board for KBA.
"I look forward to taking over this dynamic company that is now a combination of both sheetfed and web sales and service in North America," said Garbrecht, in a press release about his appointment. "KBA North America is the unparalleled technology leader in printing presses. The firm continues to introduce groundbreaking press designs and the largest range of presses for printers of any size… Following in Ralf's footsteps will be exciting since he has guided the firm to new heights since his appointment as president and CEO in October 2002."
Prior to joining KBA, Garbrecht was a top-level executive with Heidelberg, where he had overall responsibility for business in Europe, the Middle East and Africa. During his career, Garbrecht has gained executive-level experience in facets from finance to sales to service to marketing. He holds an MBA from the University of Applied Sciences Rheinland-Pfalz in international business, accounting, and controlling.
"Holger brings tremendous value to KBA North America's customers. He is a visionary who will ensure that our award-winning products, first-class service, and support will continue in the 190-year-old KBA tradition," said Ralf Sammeck. KBA North America is based in Williston, Vermont.
Pollard Banknote, headquartered in Winnipeg, has been awarded two separate contracts to provide instant lottery tickets for a new client in Poland, Totalizator Sportowy. Under the terms of the contracts, Pollard Banknote for the next four months will be printing 10 different games for the Polish lottery, which was founded in 1956 and generated over $20 million in instant ticket sales in 2006.
The value of the combined contracts is approximately $1 million, as the company moves into its 22nd international relationship around printing lottery tickets. In addition to its new Polish venture, Pollard now has lottery clients in The Netherlands, France, Switzerland, Austria, Finland, Slovenia, Sweden, Italy, Israel, Taiwan, Malaysia, French Polynesia, West Indies, Belgium, Guatemala, Mexico, Kuwait, Northern Marianas Islands, Puerto Rico, Ireland, and the United States.
Established in 1907 as a commercial printing operation called Saults & Pol, today’s Pollard Banknote Limited Partnership is owned by the Pollard family and the Pollard Banknote Income Fund. The fund, which owns which owns 26.7 percent of the head operation, was established in 2005 when the private company went public. In the mid-1970s the company shifted into security printing and began its lottery initiatives in the 1980s. It currently serves more than 45 lotteries worldwide.
In August, Pollard announced its second quarter results with sales of $40.6 million, citing a disappointing quarter based on the timing of lottery operations. Overall instant ticket and related services volumes for the second quarter of 2007 were lower by approximately 9.1 percent compared to the second quarter of 2006 due to the impact of the timing of instant ticket orders from current customers. Order-timing from the last three months, also saw the volume of pull-tab tickets decrease by approximately 22.1 percent. Bingo paper volumes were consistent. Co-CEO John Pollard said, “Our confirmed book of orders for the third quarter is at the highest level seen during our existence as a public company and the mix of this business reflects a more profitable blend of work than seen in the first half of the year.”
Pollard signed an important 10-year contract extension with the Ontario Lottery and Gaming Corporation in July. With a 5-year extension option, this is the longest commitment that Pollard has received from a customer, which will result in the opening of a finishing facility in Sault Ste. Marie, Ontario. The company has five facilities (Winnipeg, Kamloops, Alberta, Michigan, and Iowa) employing approximately 1,300 people, and an annual capacity of 13-billion instant tickets and 4-billion pull-tabs. Pollard believes it is the largest provider of instant-win scratch tickets based in Canada and the second largest producer of instant tickets in the world.
Researchers at a Toronto startup are developing the next generation of e-paper devices which will allow for colour displays which closely resembles a printed page.
Stemming from a University of Toronto research group, Opalux is commercializing this technology, which it calls P-Ink. Whereas traditional colour displays lack contrast due to its need to be grouped in trios of red, greens and blues, P-Ink technology changes the colour which is displayed through a voltage which varies from zero to two volts.
Andre Arsenault, Geoffrey Ozin and Daniel Puzzo, among others, at the University of Toronto and Ian Manners at the University of Bristol, in the UK, helped to develop this technology. So far, the group has produced pixels as small as 0.3 millimeters, or about the same size as a pixel on modern LCD screens. Like other e-paper display technologies, P-Ink requires very little electricity (only drawing power to refresh a page) and is flexible in nature. Images created by P-Ink take less than one second to refresh, meaning that while it is sufficient for static print, it is not yet capable of displaying a video signal, which is a goal when creating the next generation of highly readable displays.
The group's research has been published in the MIT Technology Review as well as the science journal Nature Photonics. Commercialization of the technology is still at least two years away, according to the group, with the first rollout aimed at advertising displays.
Pantone, Inc., the global authority and provider of professional colour standards for the design industries, unveiled the Pantone Goe System (pronounced go), with 2,058 new Pantone colours. The System also includes tools and interactive software to improve versatility in an increasingly global, multimedia environment. The company calls it the first completely new colour inspiration and specification system for the graphic arts industry since the introduction of the Pantone Matching System, 45 years ago.
"The original Pantone Matching System was designed to meet the needs of an industry that was functioning without a precise and reliable way to communicate colour," explained Richard Herbert, president of Pantone, Inc. "The Pantone Goe System works in concert with the Pantone Matching System to empower everyone in the creative and production process with a simpler, more complete, user-friendly workflow from the moment of inspiration to the realization of a finished project.”
The new colours in the system are arranged in chromatic order for precise, cross-media colour selection and specification. It includes the Pantone GoeGuide and Pantone GoeSticks, a two-volume set of adhesive-backed chips, along with software for creating colour palettes that can be imported into applications, shared among coworkers and clients, and archived for future reference. The Goe System is based on a set of 10 Pantone Mixing Bases, plus Pantone Clear, that are readily available anywhere in the world.
LithoTechnics, best known for its automatic layout calculator Metrix, has inked a OEM deal with Raster Image Processor developer Xitron. Under terms of the agreement, Xitron will sell the entire line of Metrix solutions on a worldwide basis to complement its existing line of workflow solutions for commercial and on-demand markets.
“We are delighted to be working with Xitron, a company well-known for its innovation, responsiveness to customer needs and clever solutions," said Rohan Holt, founder of LithoTechnics. “We share a similar approach to the challenges facing the printing industry and a common goal: contributing to the modernization of print production by streamlining processes, eliminating wasteful and error-prone manual tasks and optimizing resources.”
“Our printing customers are always on the lookout for cost-effective workflow add-ons that enhance automation, eliminate waste and reduce costly errors,” stated R. Patrick French, vice president for sales and marketing for Xitron. “We were very impressed with the efficiency gains we were able to achieve with an integrated Metrix/Xitron configuration, and pleased to add Metrix to our portfolio of JDF-enabled products.”
LithoTechnics will be debuting version 3 of Metrix at Graph Expo next week. The software, for the first time, will have Mac OSX support, automatic allocation of ganged layouts, dynamic barcodes and an intelligent drag-and-drop interface.
The Canadian Printing Industries Sector Council (CPISC) has undertaken a first research project designed to provide a profile of the type and scope of existing training programs offered within the industry. Building on the work of this project, CPISC will then be able to identify training gaps and determine strategies to fill these gaps. To accomplish this they need your help. The CPISC asks that you fill in a survey, giving us the benefit of your experience with training in the industry.
The resulting Compendium, which will be available by November of this year, will provide the basis upon which to make adjustments to existing training programs; meet the evolving needs of the sector; explore a range of training and apprenticeship options; and, maintain an ongoing dialogue between the industry and training providers.
Hewlett-Packard has revealed it will be making a US$300-million investment in what it calls its Print 2.0 strategy. The company is promoting the use of Web-based interfaces to promote the effectiveness of print.
"Today we’re igniting growth across every single part of our business and introducing market-leading imaging and printing solutions for consumers, small and medium businesses, the graphic arts community and enterprise customers," said Vyomesh Joshi, executive vice president, Imaging and Printing Group, HP. "With Print 2.0, we’re leveraging the power of the web as a gateway for our customers to communicate, collaborate and publish their content in ways they could not before."
The marketing campaign will be themed on a concept called “What do you have to say?” and will feature content from singer/fashion designer Gwen Stefanil Burton Snowboards founder Jake Burton and graphic designer Paula Scher.
HP has also formed partnerships with Flickr, Windows Live Spaces and Yahoo! Those companies will integrate aspects of HP-owned services such as Tabblo (custom print products) and Snapfish (photo sharing and printing).
Rose Printing, of Orillia, ON, has purchased a 5-colour Komori Lithrone SX29, with a tower coater and extended delivery, from Mississauga’s K-North Inc. The press, which is meant to assist Rose’s growth, is scheduled for installation this fall. The press will be the first LSX29 installed in Canada. It is designed to maximize the printed sheet and job cycle, according to K-North, and it accepts a 24x29 1/2-inch sheet, making it the largest half-sized Komori press. Rose’s LSX29 comes equipped with console-driven automatic makeready and semi-automatic plate changers, as well as automatic washers and other technology.
Rose Printing has served Central Ontario and the Greater Toronto Area for over 12 years. It currently employs 22 people and provides as a one-stop shop, with an electronic prepress department that also includes design and typesetting.
Montreal-based Pazazz has purchased an HP Indigo ws4500 and ABG International’s Omega Digicon HS finishing equipment, with sheeting. The new investment stands to benefit the flexography operations of Pazazz’ label division, Phase 2. The company says the investment, which creates a unique configuration for the label printing trade, totaled over $1 million. The installation of the Indigo, in combination with the company’s flexo equipment, allows it new flexibility in run lengths. The Indigo joins Pazazz’ HP 5000-series and Xerox DocuColor printers.
“Our clients were increasingly requesting the option for short-run, flexible, colour printing – often with variable data and/or personalization. Not only did we answer their call, but we tracked down the finest equipment the industry has to offer,” explains Warren Werbitt, president and CEO of Pazazz.
Founded in 1992, Pazazz is a full-service independent printer based in Montreal with offices in New York and Shanghai. In addition to being certified by the Forest Stewardship Council promoting sustainability, Pazazz is also a member of Independent Printers Worldwide consisting of over 150 independent printers. Phase 2 is a Pazazz-integrated label company specializing in flexographic and digital label production.
Photo: Warren (left) and Shawn Werbitt of Pazazz Printing
Flint Group has announced price increases on inks in North America, effective October 1, 2007. The increases come as a result of a continuing and unprecedented rise in raw material, transportation and energy costs, according to Flint, which breaks the increases as follows:
Publication Gravure - 10% Publication Heatset - 8% News Ink - 6% Sheetfed - 5% to 7% depending on product technology and colour. Packaging – up to 12% depending on product technology and colour.
Bill Miller, president, Flint Group North America, commented that the increased global consumption of petroleum and petroleum derivatives, along with limited refinery capacity, continue to be the key drivers in the cost of raw materials. In addition, recent actions taken by the Chinese government to close chemical operations that are believed to contribute to air and water pollution and the elimination of refunds of the Chinese VAT (value added tax) are also contributing factors. Both of these actions affect raw materials, intermediates and chemicals supplied to the printing ink industry on a global basis.
Flint Group serves the global printing, converting, graphic arts and color consuming industries with five specialized business units: Flint Group’s ink companies, Flint Group Printing Plates, XSYS Print Solutions (narrow web ink market), Flint Group Pigments, and Day International. Headquartered in Luxembourg, Flint Group operates more than 170 facilities worldwide and employs some 8300 people. Revenues for 2007 are estimated to be € 2.55 billion ($US3.5 billion).
Braund Supergraving of Toronto has installed a ECO 1630 computer to plate system by Mitsubishi. The machine was purchased from Pressdown Services.
The SDP-Eco1630IIIR uses up to two-thirds less processing chemistry than other current analog and digital systems. Barund Supergraving has been in operation for over 70 years and offers specialty print products as well as prepress services.
Photo: Frank Augurusa, Frank Patriarca and Peter Braund from Braund and Mark Flannigan from PDS.
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X-Rite Inc. has made a move to acquire Pantone Inc. in a deal worth US$180 million. The two companies are providers of colour management solutions to the graphic communications, as well as other colour critical markets.
"Larry Herbert and his team have built Pantone into a very successful business and we are delighted that it will now be part of the X-Rite family," said Tom Vacchiano, chief executive officer of X-Rite. "This iconic brand is the perfect complement to X-Rite's business bringing Pantone's expertise and market position in colour communication and standards to our colour solutions product offerings. We believe that this strategic acquisition will provide value for our shareholders, customers, employees and partners."
"Pantone and X-Rite have enjoyed a strategic partnership in providing colour management solutions for the digital imaging market for the last two years," said Larry Herbert, chief executive officer of Pantone. "Our company is wholly committed to colour communication and inspiration and we are enthusiastic about combining our growing business with X-Rite to apply even greater resources to this work."
Famous for its Matching System, New Jersey-based Pantone recorded US$42 million in revenues last year. The company sells its products in more than 100 countries. X-Rite, recently acquired by GretagMacbeth and known for its colour measurement tools, has doubled net sales for the first half of the year, compared to a year ago.
Michael Reiher will now begin developing OEM-partner opportunities for Quebec City-based Dynagram, which was founded in 1994 to develop imposition software for the printing industry. As director of Business Development, Reiher will specifically look into creating relationships around inpO2 technology, which is based on PDF and JDF specifications.
Reiher is recognized as the original driving force behind Aldus/Adobe PressWise imposition software and has over 20 years experience in the professional graphic arts and publishing markets. He has worked on development projects for companies like Adobe Systems and Imation.
"We're very excited to have Michael join our team" said Francois Guerard, CEO of Dynagram. "Michael's work with PressWise and the whole prepress product line was really forward thinking, and we're happy to bring his passion for the professional market to Dynagram." Dynagram has offices in San Diego and Quebec City.
In June 2007, Dynagram launched its brand new inpO2 ATOM edition, which allows for end-to-end PDF prepress workflow when coupled with a PDF-enabled RIP. inpO2 ATOM's Wizard walks a user through the entire imposition process to create press-ready files. Fine-tuning can then be performed directly within Acrobat's light-table interface. In inpO2 ATOM, press sheets are large PDF pages and the layout elements (press marks, page numbers, page outlines, etc.) are pure PDF objects. Document pages to be imposed are flown in their native PDF environment.
In what HP describes as a redefinition of mobile printing, the company has introduced CloudPrint, a free service where customers can upload their documents to be printed remotely, either by commercial printers or to private machines.
Users can upload their files to CloudPrint's server via a print driver and CloudPrint will then send the user a confirmation code via SMS to their cell phone. Using that code and the phone number, the user can then retrieve the file to print from any computer, or at commercial printers.
According to HP, the advantage of this system is that it does not require emailing large data files. A future feature will allow users to view the files online as well as prerendered for mobile devices' smaller screens. The documents are stored indefinitely on CloudPrint's server.
Commercial and quick printers can register with HP to become a print provider for the area. Anyone, from a café with a laser printer to full-blown commercial operations, can be listed within the CloudPrint directory, with pricing set by the individual providers.
Coming out of HP's Palo Alto labs, CloudPrint is still early in its development, with programming beginning just six weeks ago. You can try the beta by clicking here.
Kopy Copy has installed a Xerox DocuColor 8000 engine to enter high-end production printing. The Markham-based company has been working with a smaller DocuColor 2060 engine and a DocuColor 12. Labeling itself as a multimedia and commercial printing company, Kopy Copy specializes in digital printing, wide format printing up to 42 inches, and design and layout.
Installation of the DocuColor 8000, according to Kopy Copy, will be used to offer customers complex variable printing applications. In the past, the company worked primarily on applications like catalogues, brochures, presentation folders, postcards, flyers, posters, magazines and on-demand books. The company also employs a small-format offset press.
Photo: Ivan Ho, Kitty Chan and Henwick Yiu of Kopy Copy.
Transcontinental has made a takeover bid to the shareholders of PLM Group, Canada's fourth-largest printer. Transcontinental will pay $130 million in the deal.
Founded in 1987, PLM has grown to include four facilities in the Greater Toronto Area, which generated $126 million in revenue last year. The company offers direct marketing, premedia services, as well as commercial printing with both offset and digital processes. The company has been listed on the TSX since 1997.
"With PLM, we will become a leader in Canada's direct marketing industry, a fast-growing segment where Transcontinental is already a major player in the United States," said Transcontinental president and CEO Luc Desjardins. "PLM will also complement our product and service offering in the Greater Toronto Area. We're looking forward to welcoming our future partners and colleagues to the Transcontinental family and continuing to grow together."
Barry Pike, founder, chairman, and CEO of PLM added, "As an integral part of the direct mail segment of Transcontinental, PLM will continue to provide these same services and will have the resources required to expand in the future to meet the future growing needs of its customers in this dynamic and expanding segment of the print market."
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xpedx has named Michael Kearney, a veteran Canadian paper and graphics industry executive, as head of its Canadian operations, which includes a Toronto-area distribution centre that will also serve as headquarters for xpedx Canada. The new distribution centre is being built in Brampton along with a “paper and graphics store.” (Markham will also host a graphics store). The company expects to be in full operation by Fall 2007.
Kearney, who previously served as president and chief operating officer for Vancouver-based Coast Papers, has a 30-year career working with printers across Canada. Coast Paper's parent company is now PaperlinX
“Mike is a proven leader and is the best person for this important new position at xpedx,” said xpedx executive vice president Art Douville. “He knows how to build customer-driven businesses, is expert in paper, printing and supply chain management, and is focused on bringing customers the best local market offering of products and service.” Kearney will report to Douville, who is based at xpedx headquarters in Loveland, Ohio.
In the same press release announcing Kearney’s appointment, Douville also noted that xpedx intends to expand the company’s presence in top Canadian metro areas. He said Kearney’s breadth of experience in Canada’s top print markets from British Columbia to Quebec will be valuable in building xpedx Canada. Kearney is a New Brunswick native.
“Having consulted with xpedx for the last year and a half, I’ve seen how rich in talent, assets, capabilities and customer service the organization is, “ said Mike Kearney. “I have a passion for the distribution business and welcome the opportunity to join xpedx.” Kearney said the company would provide paper and graphics supplies and equipment, as well as packaging solutions, from manufacturers in Canada, North America and worldwide. The arrival of xpedx is sure to change the important distribution landscape in Canada. xpedx is a wholly owned business of Memphis-based International Paper.
Coast Paper has received full Program for the Endorsement of Forest Certification Schemes (PEFC) certification, its second forest management certificate. PEFC is an independent, non-profit, non-government organization, founded in 1999 in Paris. The organization promotes sustainable managed forests through independent third-party certification – from entities like KPMG Performance Registar, QMI, and PricewaterhouseCooper LLP.
The organization first started awarded chain-of-custody certifications in 2001 and within a year starting reaching the 500 mark in terms of companies. Over the next few years, PEFC experienced significant, near-double growth figures. In 2006, the organization neared the 3,000 chain-of-custody certifications.
Canada-located companies involved with the certification include Abitibi Consolidated, Canfor, Domtar, Stora Enso Port Hawkesbury, West Fraser Timber, Weyerhaeuser, Tembec. Coast Paper, owned by PaperlinX, has 300 employees, eight locations, over 45 suppliers and a 7,000-item inventory. PEFC has in its membership 33 independent national forest certification systems. Of these, 23 accredited systems account for more than 200-million hectares of certified forests producing millions of tonnes of certified timber to the marketplace making PEFC the world's largest certification system.
Sean Springett becomes district sales manager for Western Canada
Sean Springett is MAN Roland’s new District Sales Manager for Western Canada, where he will focus on sheetfed presses. With a degree in accounting and finance, Springett began his graphic arts career with postpress manufacturer Muller Martini Canada in 1996.
While at that company, he eventually became the technical sales representative for Ontario in 1998. Two years later, Springett was promoted to National Sales Manager. He also spent time with a pressroom chemical supplier to the graphic arts industry.
“Sean is an expert in helping Canadian printers work more efficiently in prepress, the pressroom, and the bindery,” said Paul Tasker, General Manager of MAN Roland Canada, in a press release.
Natalie Larivière
TRANSCONTINENTAL JOINS SEVEN SQUARED IN CUSTOM PUBLISHING
Transcontinental Media has announced the launch of Transcontinental Custom Communications, a joint venture with UK publishing agency Seven Squared, to provide custom publishing services to clients in Canada and the U.S. Custom publishing attempts a client’s marketing objectives by delivering unique branded content to customers using print or digital channels. Transcontinental Custom Communications will offer fully integrated relationship marketing services that include database marketing, research, variable printing, photo studio and premedia tools. In the UK, Seven Squared has expertise in custom publishing, developing custom magazines for blue-chip clients such as Sainsbury’s Magazine, and having been named the UK’s “fastest growing custom publishing agency,” according to Marketing Magazine.
“Branded content offers marketers the ability to connect in an engaging and non-intrusive way with their target audience, while providing high value returns,” said Natalie Larivière, president, Transcontinental Media. “Combining the experience of Seven Squared with Transcontinental Canadian media expertise will provide best-in-class branded content services to our clients’ increasingly global integrated marketing strategies.
“Building on Transcontinental’s established array of media and marketing services to create Transcontinental Custom Communications is a great step forward in our group’s evolution,” said Simon Chappell, Director, Seven Squared. Nino Di Cara from Seven Squared’s operation in London, England, will manage the Toronto-based operation as Director, Custom Publishing.
Transcontinental has also announced that it will be printing the seventh volume of Harry Potter for the French market. The final volume of the popular children’s series will see a French language release on October 26. Transcontinental will print more than 250,000 copies at its Gagné plant in Louiseville, Quebec. The $20-million plant opened in June.
Lowes Printing of Mississauga, owned by David Lowe, has recently installed a new 40-inch, 5-colour Mitsubishi Diamond LS press. The press includes a tower coater and delivery extension. After 25 years of printing experience, Dave Lowe recently started up his own trade shop with this press to operate alongside CTP devices.
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Amid a new surge of inkjet press installations across Canada, HP over the past two months has installed several of its systems built from the 2005 purchase of Scitex systems, a deal worth US$230 million.
Cameron Advertising Displays is one of the latest in the series. They have recently installed an HP Scitex TJ8500 press, which the company believes will open doors to new markets. While Cameron has used digital technology to produce direct-to-screen images for screen printing for many years, this is the first digital press for the company.
“With the speed and quality of the TurboJet more of our core work will be produced digitally,” said Cameron’s president Bob Deveau, in a press release.
Cameron is a family-run business with 45 years of experience and a clientele made up mainly of advertising agencies. The new press, which can output at 4,300 square feet per hour, is expected to enhance Cameron’s capabilities in delivering large projects like vehicle wraps and wall murals.
Other installations this summer include Eclipse Imaging's purchase of two XL1500 digital presses, Montreal-based Version Image Plus' new TurboJet 8500, Advanta Visual Media’s purchase of a XL1500 and Mediavision’s purchase of a HP Scitex XL1500.
Quebecor World announced this week that it has tripled its loss in the second quarter, falling $21.11 million into the red compared to a $6.5 million loss in same period last year.
The company attributes part of the shortfall to continuing restructuring charges under CEO Wes Lucas' five-point transformation plan, announced at this time last year. The five-point plan included retooling and restructuring of Quebecor World facilities and workforce cuts. In the second quarter, this meant the closure of a Phoenix, AZ facility, the announcement of the shutdown of one of the Vancouver, B.C. facilities and the installation of four new or relocated presses.
“As expected, the acceleration of our re-tooling efforts and the challenging market conditions in some segments, especially in Europe, negatively impacted our financial results,” said Lucas.
Parent company Quebecor Inc. saw its net income rise 23.3 percent to $36.6 million, despite revenue falling 2.3 percent over the same period last year. The company was buoyed by gains from its Media division, which grew its net income nearly 50 percent. Its cable offerings in Quebec also saw strong gains.
"Under continuing soft market conditions, Quebecor World's quarterly results were again affected by operational inefficiencies and costs related to these programs," said Pierre Karl Péladeau, president and chief executive officer of Quebecor Inc. He went on to say that the changes are ahead of schedule and would be complete before the second half of next year.
Charles Knott
KNOTT NEW CEO FOR FLINT GROUP
On September 1, 2007, Charles Knott will succeed Dave Frescoln as the new CEO of Flint Group, described as the world’s largest privately owned supplier to the printing, converting, and colourant industries. Frescoln will become deputy chairman of the company’s Boards.
Knott has past experience in helping evolve global specialty chemical companies within companies like Unilever plc and ICI plc. He has been the president and chief operating officer of National Starch & Chemical, based in North America, and executive vice president Asia-Pacific, based for six years in Singapore where he developed business in all areas of the Far East, particularly in China. Most recently he has served for four years as chairman and CEO of Quest International, a flavours and fragrances subsidiary of ICI until its sale to Givaudan in early 2007. Knott was a member of the Executive Board of ICI and is currently a non-executive director of Imperial Tobacco Group.
Frescoln joined Flint Ink in 1992 as vice president, chief financial officer, and was elected president in late 1992, and became vice chairman and chief executive officer in 2005. Following the union of Flint Ink with XSYS Print Solutions in 2005, he became CEO of the newly created Flint Group. (See PrintAction’s June 2007 cover story, “The Transfer of Pigment”, in which Frescoln was interviewed about his role in growing Flint and the future of ink on a process level – offset, inkjet and electrophotography.)
Komunik Corporation announced that, effective September 28, it will close its Markham facility and will transfer production to its Mississauga and LaSalle facilities. The transfer of equipment and relocation of employees to Mississauga will result in a workforce loss of 21 full-time employees. Komunik's presence in Mississauga will now include sales, production, warehousing and distribution, all available within the same facility. The company says these measures will result in significant cost reductions for Komunik.
The decision to close this facility was made to mitigate the effects of a forecasted softening of the business form print market and to strengthen the other Komunik facilities meanwhile. "Any decision that has an impact on the lives of colleagues is not taken lightly," says Alain Paquin, chairman, president and chief executive officer of Komunik Corporation. "Unfortunately, given the predicted downturn in our industry, the reality is that we will be more efficient by consolidating resources at our other plants."
The Markham facility is the former home of Datamark Systems Group, which Komunik acquired in June.
Positif Graphique Inc., a large format offset/screen printer in Laval, Quebec, has purchased a Screen Ultima 36000SD. This is the first VLF-class computer-to-plate system that Fujifilm has installed in Eastern Canada, according to the company.
Alain Desmarais, production manager of Positif Graphique commented about the reason for the install: “It provided a cost effective and efficient solution to bringing our platemaking needs for our 6-colour 77-inch press, in-house.”
Positif Graphique Inc. is a family owned offset- and screen-printing company specializing in large-format display products. The company has been in business for nearly 30 years and currently employs over 30 full-time staff. Equipped with a large variety of presses, ranging from 28 to 77 inches, Positif Graphique prints displays, POP material and large format posters/maps. Positif Graphique’s services extend to design, finishing, die-cutting, mounting and distribution of display products including posters, banners, and bus shelter signage.
Photo: Gilles Ouimet, owner of Positif Graphique Inc., Raymond Brideau, account manager for Fujifilm Canada Inc., and Line Ouimet, president of Positif Graphique Inc.
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NEWS FOR THE WEEK OF JULY 30, 2007
Carsten Knudsen
ESKO TO BUY ARTWORK SYSTEMS
This week Esko launched a EUR11.50-per-share offer to acquire Artwork Systems Group, which would see the two workflow companies – both with a strong foothold in packaging, as well as commercial printing – combine worldwide operations. The agreement comes despite Artwork System being in the middle of a preflight patent dispute with Markzware. The resulting new entity would have an estimated 2007 revenues in excess of EUR 180 million ($260 million in Canadian funds) and a combined workforce of close to 1,000 people. Esko is controlled by the Danish private equity fund Axcel.
The agreement between the two companies would hand Esko 13,074,483 shares, which makes the deal worth around EUR 196 million. Those shares being sold are currently controlled by the holding companies of Artwork Systems founders, Guido Van der Schueren, Peter Denoo and Bart Denoo. If that deal closes on the August 9, 2007 target date, a mandatory public offer will be made for all remaining shares. At that time Esko plans to launch a buy-out offer, provided it has acquired 95 percent of the share capital of Artwork Systems Group.
Carsten Knudsen, who is currently the CEO of Esko-Graphics A/S, will become the CEO of the combined group. Guido Van der Schueren, who is currently the chairman of the board of directors of Artwork Systems, will become the chief commercial officer leading the new group's integrated marketing and sales operations. The three founders of Artwork Systems have expressed their support for sale. Van der Schueren will also become a significant shareholder of the combined entity, next to Axcel and management members.
"Starting from a common background with prepress software for packaging specialists, Artwork Systems and Esko each have developed into broader and complementary application areas,” says Van der Schueren, in a press release about the deal. “Our combined portfolio of products and services offers appropriate solutions for virtually any customer in packaging, commercial printing and office/business publishing.”
Protest by the printing industry changes Adobe’s plans
Following the recommendations of the PIA/GATF and the Graphic Communication Coalition for Open Competition (GCCOC), Adobe announced on Wednesday that it will re-release Acrobat 8.1 and Reader 8.1 as Acrobat and Reader 8.1.1.
On June 6, Adobe and FedEx Kinko’s announced the release of the PDF applications’ first updates, both of which include a button embedded in the main toolbar marked with the Kinko’s emblem. This button, which appears in every free copy of the initial upgrade, essentially links the user to FedEx Kinko’s Website, in order to run the selected PDF through Kinko’s Print Online template system, and to print at a Kinko’s store. The ‘Send to FedEx Kinko’s’ command (also found under the File menu) was marketed as a U.S. function, but users can easily navigate the site to have the online job printed or shipped internationally.
The graphic communications industries reacted immediately and severely to the news that Adobe Systems had entered into an exclusive partnership with a print provider. Disgruntled printers sent angry letters to Adobe, which issued a form letter response to any inquirers. In Adobe and FedEx’ silence, online opinions flourished in blogs and opinion articles that seemed to involve all the corners of the community.
On July 17, Adobe held an advisory meeting among CEO Bruce Chizen, SVP John Loiacono, industry association heads and others, to discuss the issue. Armed with the demands of their members, Michael Makin of the PIA/GATF, and the GCCOC (comprised of the NAPL, NAQP, as well as presidents and chief executives from other institutions) made similar demands that Adobe remove the Kinko’s button immediately, and issue a new dot-release of the Acrobat software without the button. Adobe absorbed the recommendations of the July 17 meeting and issued the following statement this week:
Adobe will remove the "Send to FedEx Kinko's" service and functionality, currently available to US customers, in Adobe Reader and Adobe Acrobat. The versions of Adobe Reader and Acrobat that are scheduled to be released in October will not contain the feature. We are implementing these changes as quickly as we can. However, we need time to write and test the software. Adobe Reader and Acrobat are critical pieces of software for tens of millions of customers and we have to be sure the software we deliver is up to its usual quality.
Adobe originally announced the FedEx Kinko's features on June 6, 2007 and decided to remove them from Adobe Reader and Acrobat following a meeting and getting feedback from print service providers. Moving forward Adobe is setting up a Print Advisory Council to investigate how best to integrate third party print services into Adobe products, as more partners invest in online print infrastructures.
FedEx Kinko's has been exemplary in this process. They understand the reasons behind the decision and the implications to the broader print service provider industry. They have worked diligently with Adobe to craft a resolution. When Adobe ships the new updates to Acrobat and Adobe Reader in October, FedEx Kinko's will begin distributing a version of Adobe Reader, with the "Send to FedEx Kinko's" functionality, directly to its customers. This version will be available only from the FedEx Kinko's website (fedexkinkos.com or fedex.com).
Adobe's revenue expectations from this functionality were not expected to be material and this change will have little to no impact on Adobe's financial results. Adobe will make no revenue from this new arrangement.
On July 30, 2007, Vancouver-based Concept Paper Incorporated became an employee-owned company. The company, which sells coated, uncoated and specialized digital papers, opened one year ago in July 2006, claiming itself to be the only Canadian-owned national fine paper distribution company in the country.
The company, led by president and CEO, Rob Ingram, VP of operations Randy Schick, and VP of sales Brad Parno, has a direct presence in Vancouver (head office), Calgary, Toronto and Edmonton and states that it has plans to open in other Canadian cities over the next couple of years. The news comes just weeks after giant U.S.-based distributor Xpedx announced it would enter the Canadian market, first through the Toronto area.
"Not long ago there were multiple Canadian owned national paper distributors. All have been bought up by large international companies. This has been tough to witness but has also opened up opportunity for smaller low cost models such as ours," said Brad Parno, in a press release about the ownership change. Parno also points out that 80 percent of Concept Paper’s staff focus on sales or service, as the company tries leverage its Canadian identity to make a local imprint on customers.
Photo: Brad Parno - VP Sales and Marketing, Ken Harris - Sales Manager - Ontario Region, Rob Ingram - President and CEO, Kristy Bell - Human Resources Manager, Randy Sawatzky - VP Prairie Region, Randy Schick - VP Operations
Absent: Glenn Clifford - Senior Account Manager - Ontario Region, Ron Selig - Regional Sales Manager - Edmonton, Joe Lindvik - Sales Manager - BC Region
Transcontinental Media has expanded its newspaper offerings by acquiring Seaway News in Cornwall this week.
"Seaway News is a truly local weekly paper and captures the spirit of the Cornwall area," said Marc-Noel Ouellette, senior vice president, Newspaper Group, Transcontinental Media. "And, just as residents look forward to reading about their community each week, we look forward to continuing the success of the paper and building our portfolio in eastern Ontario."
Seaway News was launched in 1985 by Dick Aubry (publisher) and Rick Shaver (general manager). The paper serves more than 36,000 households in Eastern Ontario.
This acquisition brings the total number of newspapers owned by Transcontinental to 169. Transcontinental is the country's second largest publisher of community newspapers with 250 million copies produced annually.
Domtar has announced it will permanently shutter a mill, a converting centre and two paper machines resulting in a drop of 284,000 tons of paper production and 430 jobs eliminated.
"Today's announcement is an important step in our review of our overall production capacity," said Raymond Royer, Domtar’s president and chief executive officer. "The driving forces behind this decision to permanently close these operations are excess capacity and cost competitiveness. While we are in the process of leveraging our improved geographic footprint to serve our customers from our best performing operations, adjusting our production to demand remains an ongoing exercise. Further rationalization may be implemented in the near future."
Domtar's Woodland paper machine, which produces 125,000 tons of uncoated paper per year, closed immediately, as did the Port Edwards #5 machine. The company's Gatineau, Quebec mill, with a production capacity of 125,000 tons of coated and uncoated paper, will close by October 27.
In March, Domtar completed its merger with Weyerhaeuser to become the largest largest manufacturer and marketer of uncoated freesheet paper in North America.
Do you have a news tip or a comment on any of these stories? Let us know!
PRESSWISE FOUNDER JOINS DYNAGRAM
CLOUDPRINT TO REDEFINE MOBILE PRINTING
COAST PAPER MORE GREEN
RESTRUCTURING FURTHERS QUEBECOR WORLD SKID
ADOBE BACKS DOWN FROM KINKO'S BUTTON
