Dobruška / On March 10 the KBA group became a 100 % owner of Grafitec. The acquisition is part of the KBA strategy, to extend its scope of activities also to the segment of small-format printing machines, where further growth is expected.

Dear Customers

The year 2004 was one of the most successful in the history of the company Grafitec, when the company succeeded to increase turnover in more than 55 % compared to year 2003. This year, many changes are expected to occur in our company, The first of them happened on March 10 when the KBA group became a 100 % owner of Grafitec. The acquisition is part of the KBA strategy, to extend its scope of activities also to the segment of small-format printing machines, where further growth is expected.
 
Nearly one month passed since the entry of KBA to Grafitec. It is natural that this acquisition induced many questions. From my - still short - activities as general manager of the company KBA-GRAFITEC, I would like to answer at least the frequently asked questions from you, our highly estimated customers.

What are the reasons for the company KBA to take-over Grafitec?

The KBA group has already a very strong position on the world market for sheet-fed presses of the B1 and bigger formats up to the super-large Rapida 205, the biggest sheet-fed press in the world. In contrast to our main competitors we offered only top-class machines in the B2 size class by now, like Rapida 74, Rapida 74 Gravufow and 74 Karat. Sometimes we felt this to be a handicap. The disadvantage proved mainly on emerging markets and in small, family-owned print shops, where also machines in a lower price category are expected. We performed research of potential partners and we came to the conclusion that Grafitec ideally meets our expectations as it produces high-quality products, meeting the requirements of the market. The half-size press from Grafitec is better from the technical point of view than many competing machines of the same size and class.

KBA-Grafitec has two press types in the B2 and the smaller A2 format. Both machines are on a good technical and application level and that is why KBA and Grafitec may accomplish a lot in the future. KBA as the oldest press manufacturer in the world is known in many fields as an innovative, competent and experienced partner of the international printing industry with a long tradition and good reputation for quality and customer-orientation.

How will co-exist the B2 size press machines within the scope of KBA Group?

In the future we will have four machines for the 520 x 740 mm size: The Polly Prestige 74 (will get a new name and KBA design), Rapida 74, Rapida 74 G and 74 Karat. Each of the machines aims at a different market segment. The 74 Karat with Direct Imaging technology is designed especially for short runs with critical delivery time. The Rapida 74 Gravuflow represents a new concept combining waterless offset with keyless inking technology. The machine is designed for top quality on critical and expensive substrates like designer or aluminium-coated papers, high-quality carton or plastic foils. The Rapida 74 with its output of up to 18,000 sph, up to 10 or even more printing units, optional perfecting and many options for inline-finishing (coating; numbering; perforating, Corona tower for foils…) is a highly automated machine for medium and high-end market segments in commercial and packaging printing. The current Prestige 74 half-size press produced by KBA-GRAFITEC with up to 6colours and optional varnishing unit mainly focuses on the commercial market with a good performance / price ratio. Not all printers need and use a press with an output of 18,000 sheets/hour. So the KBA and KBA-GRAFITEC B2 presses complement each other.

How will the technical development of KBA-GRAFITEC products proceed? In co-operation with your development department or independently?

We will undoubtedly use the huge KBA resources whenever useful or necessary, but we don't want to clone the Rapidas at Grafitec. So I expect some initial steps in the near future, while in the longer run, the technical development at KBA‑GRAFITEC will be synchronised with KBA plans. We appreciate some solutions at the KBA-GRAFITEC machines and will listen to their users to learn whether there is a need for improvement in details. However, the KBA-GRAFITEC products address a market and price segment where not all bells and whistles of more expensive high-end presses make sense. The overall price/performance package has to be attractive and competitive and for many customers this means also affordable costs for investment.

How will be performed the production co-operation?

Labour costs in Germany are much higher than in the Czech Republic. So the higher automation of parts production in Germany is a must. We will classify all individual parts from the quality and economic convenience point of view. They will be produced at the most efficient location. The same applies to sub-contractors. Some supplies may be more favourable from the Czech Republic, others from Germany. The same attitude will apply to purchased parts and aggregates. Undoubtedly, in this case KBA-GRAFITEC will benefit from corporate contracts concluded between KBA and its favourite suppliers.

Will you - as the KBA-GRAFITEC - continue the distribution of CTP equipment and materials Presstek?

Starting from the previous year, Grafitec is a distribution partner of the American company Presstek for Central and East European markets and in the course of quite a short time it proved its sales skills, performing several successful installations in the Czech Republic. It concerns solutions suitable for small and medium printing shops, to which Grafitec sells the printing machines. We will continue the Presstek project and we will develop it for other markets in Central and East Europe.

What would you like to say to typographers from the position of a new owner?

I would like to tell them that they do not have to be afraid at all. We will continue sales and service on the basis of the current Grafitec sales and service organisation wherever useful and join forces with the much bigger and stronger KBA organisation for markets where this makes sense in the interest of the existing and hopefully many new KBA-Grafitec customers. Naturally, we have to integrate and strengthen sales and service for Grafitec products step by step to reach our ambitious targets on new markets in the future, based on the global KBA experience and position. In our declaration referring the take-over of Grafitec we stated our philosophy: client on the first place. If you have a printing machine and you are fully dependent on it, service is the most important matter for you. The relations by and between Grafitec and clients do not change. Many of you have already some experience with Grafitec machines and services from the past and I do believe that the good experience prevails. Technical matters and service will be solved in the same ways and with the same team support as by now. KBA is a strong partner and clients may expect only benefits related to our entry to Dobruška. Undoubtedly, we want to extend the market position of KBA-Grafitec in Central and East Europe as well as in other regions in the future. We are confident to reach our goals as we already demonstrated in the bigger formats with the dynamic growth of our sheet-fed division in Radebeul near Dresden in the last 12 years.

Finally, I cordially invite you to visit the Poligrafia 2005 exhibition in Poznan (hall 3A, stand No. 16) in April 2005 and/or the EmbaxPrint 2005 show in Brno (hall F, stand No. 11.) in May. Come personally to see us. You will already get a feeling on the new KBA-Grafitec and see (on EMBAX) innovative A3-, A2- and B2 presses from KBA and KBA-Grafitec in production Our staff will be honoured with your visit and they will do their very best to answer all your questions on KBA, KBA‑GRAFITEC, our business philosophy, our products and our services for you, our customers.

I am looking forward to a close and good co-operation in the future and I wish you a lot of success for your business.

Jens D. Junker
General Manager