KBA Hosts Production Open Days

The consumption of printed newspapers, magazines, catalogs and books has not been left unscathed by the advance of the internet into more and more aspects of our lives. Print media is forced to share readers and pieces of the advertising pie with a growing number of online channels. In addition, publishing houses are on the hunt for sustainable business models and are therefore often reluctant to invest in print.
 
This affects press manufacturers in media and advertising-orientated markets. The global market for sheetfed offset presses has halved since 2007 and demand for web offset presses for larger runs has shrunk by over three quarters. More than 15,000 jobs have been lost alone at the three biggest German manufacturers – Heidelberger Druck, Koenig & Bauer (KBA) and manroland – given the necessary adjustments to capacity.
 
KBA has now largely implemented its Fit@All program for the realignment of the company in place since the beginning of 2014. The extensive package of measures includes the relocation of more than 50 machine tools, preventing parallel activities at the production sites. The plants in Ternitz and Trennfeld have been closed and sold. The cut of a total of 1,500 jobs announced in 2013 is virtually complete.
 
On May 21, 2015, the majority of the KBA AGM approved the company realignment under company law proposed by the management board. This stipulates the conversion of the parent company, Koenig & Bauer AG, into a management holding following the spin-off of four operating subsidiaries for the business units digital & web (KBA-Digital & Web Solutions), sheetfed (KBA-Sheetfed Solutions), security printing (KBA-NotaSys) and production (KBA-Industrial Solutions). The four spun-off companies will have a German legal status of an AG & Co. KG (limited partnership) with the parent Koenig & Bauer AG as sole general partner.
 
The holding company’s management board, which primarily will take over strategic and central tasks, is to be reduced to three members.
 
Excluding apprentices, trainees and employees on phased retirement schemes at the end of March 2015 there were 4,711 employees on group payroll. This was more than 3,000 less than eight years ago. In 2007, group sales still stood at €1.7 billion compared to €1.1 billion in 2014.
 
KBA’s previously core web offset press business has shrunk the most. Along with its main site in Würzburg, the factory in Trennfeld and the plant in Frankenthal/Palatinate were especially affected by this market slump. The missing sales volume could only partly be replaced with business opportunities in digital and packaging printing.
 
KBA is therefore actively pushing forward with the expansion of its product portfolio and strengthening its market position in growth areas. In addition to its own new product developments, this strategy includes company takeovers, such as KBA-Flexotecnica and KBA-Kammann in 2013, and partnerships with other firms. For example, an inkjet press for corrugated packaging to be unveiled at the Würzburg site in November co-developed with American manufacturer Hewlett Packard (HP).
 
The repercussions of the structural shift in the print and media arena are well publicized. At times the impression is given that print is only heading downhill, but this is not true. Stable and growing markets for printed matter exist, e.g. packaging and new industrial applications.
 
The world’s oldest and second-largest press manufacturer continues to believe in print and a positive future for its main site in Würzburg despite necessary cutbacks in recent years. This is why the company invested €14 million in 2011 in renovating its foundry and recently more than €7 million in production facilities in Würzburg with the installation of five high-tech machining centers.