PBL ditches plans for giant ACP print site

PBL’s decision is the biggest fillip the domestic print industry has received in a long while, and will have both printers and suppliers rejoicing. For printers the news that the ACP work staying in the commercial industry is a huge boost, primarily for PMP of course, but also for a host of other printers who print for the country’s biggest publisher, either directly or through work farmed out by PMP. Other heatset web printers on the ACP rosta include IPMG, which prints a significant amount for PBL, with AIW and Webstar also in the mix. ACP publishes more than 40 per cent of the country’s magazines.

For suppliers the end of the will-they-won’t-they saga should release the logjam which has created a major barrier to investment in the heatset sector, as the nation’s big printers waited to see whether ACP would go ahead with its threat to self-print. The other big decision in the pipeline, IPMG’s proposed plans for a gravure plant, is far less significant for the industry as a whole.

It is not all win for print though, as PBL is believed to have negotiated lower pricing with its major print suppliers, with many industry insiders believing that was PBL’s end plan all along, and the whole self-print story was a ploy to force PMP’s prices down. However PBL itself appeared deadly serious, and had a six strong team of highly experienced executives working on the plan.

Richard Allely, CEO of PMP applauded the decision, telling Australian Printer while PBL’s abandonment of the plan was clearly an internal capital decision it was good news for PMP and the print industry in general.

He says, “Being a printer we would never have encouraged more capacity into a market which already has enough capacity for the work available. PMP stands to gain more than anyone else from this decision as our current three year contract with PBL will be extended another two years.”

Meanwhile, Ian Law, chief executive of PBL told the Australian Financial Review the main driving factor for the decision was that the surplus capacity looks likely to be greater in the future and the publisher is now confident its future production requirements can be meet by a number of suppliers at a competitive rate. He added that “We also now have higher priorities for our capital at this time.”

In October last year PBL had reported an advanced stage of planning for the projected print site, which was set to be established in the western suburbs of Sydney and would have resulted in ACP Magazines’ print and distribution being centralised at one site

At the time Ian Law said PBL had undertaken an exhaustive analysis of the printing options available and it became clear there were compelling reasons to take control of the production of its own publications. However throughout the entire process printing industry insiders maintained that the plan made no economic sense, especially with the excess capacity already in the industry.

Richard Allely also says, “PBL is the country’s largest publisher and PMP is the largest printer so there has to be cooperation, and the relationship we have developed with PBL is a productive one. PBL’s decision is economically sound and will see both PMP and PBL benefit.” PBL is PMP’s biggest magazine client, it”s business accounts for six per cent of PMP’s total work. PMP has bigger clients, but they are in the retail sector.

 

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