Despite PMP’s transformation strategy – which aims to create a focused, best practice operation – the print giant is still set to lose its lucrative ACP magazines contract. PBL Media says its plan to establish an ACP printing and distribution operation in Sydney is going ahead, however the start date may be slipped back.
According to the Australian Financial Review (AFR), PMP hoped its transformation plan, which includes a revamp of its two main Australian printing centres, would convince PBL Media to abandon the idea of setting up its own printery.However, Ian Law, chief executive of PBL Media says the plan has been slightly delayed in signing agreement with equipment suppliers, but the new supersite – likely to be in the $150m-$200m range – is still going to be built.
Law says, “The start date may slip from late 2011 into 2012, but we are currently finalising our financing structure and everything is moving ahead.”
PMP’s strategy includes the creation of a specialist magazine printing operation at Moorebank, with its Clayton centre in Melbourne to concentrate on printing catalogues. Richard Allely, chief executive of PMP told the AFR in May that he was relatively confident that the transformation plan would secure the ACP contract and he was relatively confident the ACP print centre would never be built.
Allely says, “A dedicated, specialist magazine printing centre will be attractive to publishers. A centralised printing and distribution operation is one of the things ACP wants to achieve with its new site.”
PBL says the new press and distribution facility will feature the latest in state of the art equipment and the resulting productivity and efficiency would add to ACP Magazines’ capacity to deliver value to readers and advertisers.
