Esko-Graphics has announced a significant shift in its CTP focus, which will see it take a step back from the development of commercial CTP solutions in order to dedicate itself to packaging CTP production. The packaging market can now expect a raft of value-added solutions combining hardware and software products with a growing selection of customer services and consultancy. In the commercial printing segment, Esko-Graphics will concentrate on Scope workflow software, on smaller format CTP devices for polyester and violet plates, and on Espresso, the company’s four-up computer-to-UV-plate (CtUP) system.
Kim Graven-Nielsen, Esko-Graphics president and CEO, says, "When asked by customers for advice on what strategy they should adopt, we have a straightforward answer: understand the drivers of your business, make clear choices, build innovative extensions to your existing strengths, and help your customers reduce costs and create value.
"We follow exactly the same principles for Esko-Graphics. We see the rapidly changing market dynamics in the graphics industry, and have evaluated the feedback from the many people visiting us at drupa 2004. We now make the choices that will best serve the interests of our company and its customers, and that will keep Esko-Graphics at the forefront of the industry."
Esko-Graphics’ packaging activities currently account for over 60 per cent of its revenues. Sales are growing strong in all regions and have increased by 11 per cent over the first half of 2003. It says its new solutions announced at drupa have been very well received by customers and prospects alike, and further growth is expected for the rest of the year.
"The Commercial Printing market is served by many suppliers and shows little or no overall industry growth. Fierce competition leads to price pressure and low margins. It becomes very difficult for us and for many other offset CTP suppliers to maintain a sustainable business in this segment," says Graven-Nielsen.
"Despite more attention and endorsements for violet CTP from the industry, the market development so far has been constrained by the limited availability of plates. Considering both these elements, we have decided to stop further investments into our PlateDriver violet CTP product line and to direct our efforts towards growth areas where we have a strong product position."
