Kodak Australasia is pulling the plug on its exclusive relationship with Heidelberg to distribute its sheetfed offset plates in Australia and New Zealand from July – with the German giant picking up Fujifilm’s plates instead. Tight margins and consolidation in the sheetfed offset market mean Kodak can no longer afford to work exclusively with a single channel partner, says Steve Venn, managing director of Kodak Australasia.

Kodak: taking back its plates

Instead, Kodak will bring its plate distribution inhouse to better compete with other suppliers who are selling direct. While exclusive deals are off the cards, Venn says that in some sectors, such as the small A2 or A3 market, Kodak may use a channel partner in certain territories – though its model will mainly be direct distribution. He says the company is already set up to handle direct sales through its web business, so this will extend its inhouse offerings and, he says, should strengthen Kodak’s relationships with its customers. Kodak has been changing things up across the business in its journey out of chapter 11 bankruptcy protection, with restructuring resulting in improved net losses for 2013. It recently also picked up a new CEO as it heads towards the black. Heidelberg, meanwhile, has struck a deal with Fujifilm as its replacement sheetfed offset plate provider, with the two signing a sole distributorship agreement for Australia and New Zealand effective from July.

Steve Venn, managing director of Kodak Australasia

While Kodak says the decision was purely business and not related to Heidelberg’s performance as a supplier, a statement from Richard Timson, managing director of Heidelberg Graphic Equipment in Australia and New Zealand, implies the split may not have been so amicable. Timson says, “The change from Kodak to Fuji plates for Heidelberg was some time in the making. Kodak were aware that over the last few years after entering into chapter 11 there were a number of product issues, causing concern to Heidelberg’s customers and for Heidelberg a significant degree of frustration and ultimate loss of custom.” He adds that Heidelberg and Fujifilm were discussing a potential new relationship in 2013; which Kodak’s exit has now given it an opportunity to confirm. Heidelberg and Fujifilm have already been working together through a global alliance in the inkjet space, announced last year. Timson says he is confident that customers will make the transition; he says, “We have a loyal customer base that experience the day to day support only Heidelberg can give. Many clients have indicated that they will stay with us. “After all, we have a full solution to offer customers, not only top performing Fuji plates but a full range across all consumables and equipment.” Fujifilm will continue to supply its own customer base direct, as well as catering to Heidelberg’s market. This will be Heidelberg’s third relationship with a plate supplier for the region since 2009, when it left Agfa for its 2010 deal with Kodak.  

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter