The Koenig & Bauer (KBA) Group has reported strong growth this year, with group revenue in the first nine months of 2016 rising by 22.3% to €831.4m (£705m). The second-largest press manufacturer worldwide said its order intake for that period was 1.25% higher at €869.8m than in 2015 meaning new orders exceeded group sales by more than €38m.
Order backlog was valued at €613.3m (£520m) at the end of September, up 2.7% on the previous year, and is sufficient to ensure the capacity utilisation of the group’s plants until spring 2017. The value of KBA shares has continued to rise reaching a peak in 2016 when they rose by 80% since 2012 to nearly €50 per share – performing far better than its competitors.
The company said it has enjoyed a record year for sales in 2016, having sold particularly well into the medium format packaging sector for folding cartons with several installations in 2016–17, all to new customers. Craig Bretherton, KBA (UK) product and marketing manager, said the company envisaged print packaging globally will continue to grow at an average annual rate of 5.2% between 2016-2020. The company has a long heritage in the folding carton packaging markets and sees great potential in emerging markets, predicting the demand for cartons will increase by 17% from current levels to around $18bn (£14.5bn) in 2020, with growth showing the fastest rates in highly populated threshold countries like China and India.
“All sectors of the global packaging market are set for growth by 2020 with the greatest potential for growth predicted in film, corrugated and board packaging,” said Bretherton. “KBA is active in all six of the packaging markets (flexible packaging, corrugated board, cardboard, rigid plastics, glass and metal) and holds the number one position in three of them. The recent investments in Flexotecnica, Iberica (die cutters), and KBA Kammann (glass decorating) alongside the return of the KBA Corrugraph after a 10 year absence from the market means that KBA are well placed to meet the demands for growth in these markets.
“KBA has further strengthened its position as the number two global press supplier during 2016, and in the UK has enjoyed a 35% market share in the medium format packaging market with 100% of this being sold to new customers. KBA enjoys a global market share of over 40% of the presses sold into the folding carton market.”
The press manufacturer has a successful relationship with print and packaging companies. It partnered with HP to create the HP T1100S, which was launched in 2015 to produced digital printing directly onto corrugated sheets up to 2.8 metres wide. The partnership has blended the material transport knowhow from KBA with the experience of digital technology from HP.
KBA also launchd the RotaJET which has applications in the digital newspaper market, floor covering markets and book printing which is based upon similar technology. The first machine is set to be installed at DS Smith in the UK following successful beta testing and numerous other projects are planned.
KBA and Xerox announced at Drupa 2016 a partnership for development of the VariJET 106 digital carton press incorporating finishing and traditional print units. In the same way as the joint HP project, the inkjet side of the device will be provided by Xerox and the press, transport systems and all the other mechanical components of the press will be provided by KBA. The press is scheduled to be officially launched in 2017.
Bretherton warned though, that 2017 could be a challenging year due to uncertainties in several markets and a weak pound. “However, on the back of our successes in 2016 and the innovative solutions we offer, KBA is well placed to continue its strong performance in 2017.”