PMP’s $22m digital deal for Griffin Press
Australasia’s leading printer PMP has signed a mega deal with Currie Group to install a web-fed HP PageWide T410 inkjet, a HP Indigo 10000 B2 sheetfed and HP Indigo 7800 digital press. In addition the massive deal, one of the largest ever in the local industry, includes a Scodix Ultra Pro digital embellisher as well as a Kolbus folder and perfect binder finishing line to ramp up digital printing capacity at PMP’s South Australia-based book printing division, Griffin Press.
The seven-year leasing agreement, which will be treated as an operating lease with a cost of $3.2 million a year, was announced by PMP this morning in a statement to the ASX:
To meet changing consumer and publisher demand, as well as substantially advancing its transition from conventional book printing to digitally printing and finishing, Griffin Press has entered into a leasing and services arrangement with its digital printing partner HP Inc. HP Inc has been commissioned to supply three new state-of-the-art digital presses and associated finishing equipment.
HP Inc has also been commissioned to supply a Scodix Ultra Pro to provide for in-house embellishing of book covers. Griffin Press is the first book printer in Australasia to provide this embellishing solution. As a result of this new arrangement, Griffin Press will now be the largest digital book printer in Australasia.
“With the rapidly increasing trend for short run printing of books on demand, the ability to create an integrated digital workflow has become critical,” said PMP CEO Peter George. “The seven-year lease and service agreements will provide Griffin Press leading edge world class printing capability that will assist us in retaining customers and winning new contracts by providing the service the book publishing industry needs. Our printing offer to the publishing industry will include in line digital multi-colour cover printing along with full digital embellishment solutions to best meet publisher’s short run print demand.”
Under the terms of the seven-year agreement, HP will lease new digital equipment to Griffin Press, provide consumables, and be responsible for productivity from the new digital platform, according to the ASX statement. This is expected to be initially cost neutral to Griffin Press as the new lease and consumable costs will be broadly offset by operational cost savings on existing volumes. The new lease will be treated as an operating lease with $3.2m of operating costs per annum.
“We are delighted to partner such a significant investment for a company of Griffin Press’ heritage and stature in the Australian market,” said Rob Dunnett, CEO, Currie Group. “This is an exciting step forward for them and we’re looking forward to continuing this journey as they expand their services into digital.”
According to Steve Donegal, country manager, Indigo and Inkjet Digital Press Solutions, Graphics Solutions Business, HP South Pacific, HP is working to help transform and expand the digital printing business of Griffin Press. “Today’s announcement further strengthens Griffin Press’ position in the publishing industry and demonstrates how digital printing can reinvent their business possibilities.”
The new machinery will go into the Griffin Press plant in Adelaide over the next two or three months and the new production platform is expected to be commissioned by July 2016.
“It’s great news for Griffin and they’re very excited,” PMP spokesperson Ian Greenshields told Print21. “The new equipment allows us to print from one to however many books all the way through, so it’s fully digitalised printing that is much faster and much more cost effective. In Australia at the moment, any embellishing or foil covering has to be printed separately but this allows us to print from go to whoa, which reduces both cost and turnaround time.”
“A benefit from this project will be the enhanced flexibility and improved DIFOT (delivery in full, on time) for our customers and the ability to attract new customers to the new digital capability,” said George. “Operational cost savings circa $1 million are expected to be realised as further conventional processes are converted to digital.”
Griffin Press is a wholly-owned subsidiary of PMP Limited.