Make no mistake—more print projects are heading for Hong Kong/China despite the loud gripes about rising manufacturing and shipping costs. Even the much-anticipated pull-back from North American publishers is showing very little movement. Cost, obviously, is simply not everything.
For sure, one- and two-color short runs make more sense done onshore. But this category has never been big with Hong Kong/China print suppliers anyway. Those embellished with secondary processes, glamorized by plush and special accessories, and packed in custom-made slipcases, however, are a different story altogether. Where else can print buyers find proven expertise in combining different components—say, paper with cloth, leather, plastics, electronics, sound modules or toys—into a quality product that meets their budgets in this belt-tightening time? The fact remains that it is still cheaper to manufacture in Hong Kong/China. Most complaints are essentially about not getting back 2005 or 2007 prices than anything else. But truly, given the escalating global prices, how realistic is that? (Look at the greenback for part of the answer.)
A flighty euro, therefore, is a good thing for the print suppliers. The elimination of subsidies across Continental Europe in the name of fair trade is even better news. A significant increase in projects from Italy (where print media subsidies, in addition to tax credits and loans, were the most generous in the region), Poland and Germany has been reported. It follows then that many suppliers are busy planting their flags on European soil and diversifying their portfolios while tweaking processes and products at their plants back home to suit region-specific demands.
As in the past, the focus on production efficiencies is unwavering. Many new 6-color, 8-color and 10-color presses have been installed or are being commissioned since the last PW report. The unequivocal belief is that new presses with state-of-the-art technology deliver much higher efficiency and quality, and, in the longer run, are more cost-effective than running and refurbishing old metals. For this reason, the contingent of Hong Kong/China suppliers visiting print equipment fairs, like the recent DRUPA 2008, is always one of the largest, and among the fastest to implement a new technology. Most suppliers hold firm to the opinion that skimping on investment dollars during cautious times (or at any time, for that matter) is akin to cutting off the nose to spite the face.
And how can PW not mention the greening of the Hong Kong/China print industry. The efforts taken by the suppliers (and their supply chain as well as the government) firmly debunk the myth that only North America and Europe care about the planet. The fact is, China has even more at stake; its economic growth and political stability hinge on its ability to clean up the environment, quickly and effectively. Many industry pundits and environmental groups even predict that the next big green technology will most likely emerge from the country, probably out of sheer necessity. (Just so you know, China is the world's biggest photovoltaic producer, supplying 35% of the globe's solar cells, and the second biggest in rechargeable lithium-ion battery.)
At the moment, “green” investments are not an issue for Hong Kong/China suppliers. The real issue is whether clients are ready and willing to pay for them. To say that print buyers are not exactly thrilled by the higher-priced FSC-certified or recycled paper or soy-based inks is an understatement. Until, and when, the publishing community and consumers are ready to dole out that little extra and create more demand, the adoption is going to be agonizingly slow—and not for the lack of support from the print manufacturing end.
On the following pages, PW sets out with the same goal that spawned the first printing report 25 years ago: to provide a snapshot of what is happening in the industry and who is in the export game. The differences are that the projects have increased in complexity, factories grown much bigger than we have ever dreamt possible, and the printing presses become technological wonders to behold. One thing remains the same, though: these suppliers' entrepreneurial zeal and their devotion to their clients and the industry.
Asia Pacific Offset
For president Andrew Clarke, the growing interest in tree-free products has resulted in an increased demand for DuraBooks, a product patented by Melcher Media, with which Asia Pacific Offset has an exclusive printing agreement. Constructed from plastic resins and inorganic fillers, DuraBooks look and feel like ordinary books. They can take high-quality offset printing and postpress finishes such as foil stamping, embossing, die-cutting, perforation and lamination. “DuraBooks can withstand a variety of harmful elements—water, dirt, grease and humidity—and reproduce four-color art beautifully at 175 lpi. The binding is sturdy and holds up to the same extreme conditions as paper,” says Clarke, whose team has reprinted the hugely successful Cradle to Cradle on DuraBooks 16 times. The synthetic paper, however, requires a slightly longer mill-to-printer lead time and on-press drying time.
The recently FSC-certified Asia Pacific Offset is also seeing more requests for FSC, PEFC and recycled paper stocks. And speaking of paper sources, Clarke reveals, “We are participating in a new initiative to support tree planting and sustainable land management. For each project that we receive, a donation is made to Trees for the Future, an organization that helps people in developing countries improve their rural livelihoods.”
Turning to projects, one complex title with several components including a concertina book measuring 8”x12” passed through its doors recently. “Unfolded, the book is 136 inches long. The complexity lies in making the seams as inconspicuous as possible. We had to proof the images on both sides of the sheet and make several variations of mock-ups before settling on the best version,” says Clarke. “Different mock-ups of the slipcase were also made to determine the right amount of room for the book and the other components.” In such projects, the company's unique print management model and its established relationships with a selected number of printers of varying sizes and expertise have been advantageous. “We differ from other print brokerage firms in that we supply our printers with the raw materials and our Hong Kong and China production teams control the entire manufacturing process.”
The strong yuan coupled with the weak dollar, says Clarke, “has certainly had an impact on prices. I think publishers have learned to live with a 10%—15% cost increase. On our part, we try to keep costs under control, which we have been successful in doing because of our excellent paper suppliers and manufacturing partners. We also work with publishers on ways to minimize cost increases, particularly for series. Overall, there is still no competition to the level of quality and service provided by Hong Kong and China print manufacturers.”
C&C Offset
C&C is sparing no effort in answering the call to adopt greener and cleaner production practices. “Last year, approximately 73%, or 480 metric tons, of the inks used by our web presses was soy-based,” says managing director Ken Lee. “We are using more of such inks because they contain fewer VOCs, which means we can enjoy better air quality in our plants. We are aggressively reducing VOC and carbon dioxide emission at our facilities and cutting down energy consumption. The active carbon filter system on our production floors, for instance, reduces VOC emission by 19.4%. The exhaust recycling system for heat exchange and air-conditioning saves us approximately 390,000 kW of electricity per annum, or $45,000, and reduces carbon dioxide emission by 440 metric tons. Switching to energy-saving lamps at our Shenzhen web-printing center also saves us 53,000 kW per year.” Given China's tight energy supply, such proactive moves are most prudent.
As part of its eco-friendly drive, C&C obtained the FSC-CoC certification last August. “We have since put in place specific regulations pertaining to FSC products on our floors, such as differentiating FSC and non-FSC print orders and allocating storage areas for semifinished and finished FSC products,” says Lee, but he cautions that FSC paper costs 20%—30% more and takes a week longer to indent than normal stocks.
Project-wise, Team C&C swept seven Benny awards last year, and one project—David Robert's three-volume The Holy Land/Egypt & Nubia—stands out. “Expertise in color management was critical, as the 247 paintings in the books are reproductions of historical pencil drawings of ancient scenes that were subsequently colored or tinted. We used 175-lpi printing and applied spot varnishing throughout the books for added luminosity,” says deputy general manager Ivy Lam. “Another project, Cosmos: A Field Guide, is a huge book on an expansive subject. At 43 cm x 35 cm, it is the largest ever illustrated guide on the solar system, and we use high-density Toyo ink for the solid black background to provide a stunning contrast for the 450 photographs and illustrations. The reverse type on black demanded impeccable registration work from our production personnel backed by the quality assurance teams.”
Over on the operations side, CEO Charles Lo retired last year and passed the baton to Jackson Leung, whose focus remains the same: diversifying the printing business within the book and commercial product segments and offering more custom solutions. Diversification is very much the driver behind the setting up of a new London office that targets high-volume commercial web printing jobs such as product catalogs and lifestyle magazines. “We want to extend our print offerings to this new market, and we consider this the first step toward serving commercial clients from Europe,” adds Lee.
Colorcraft
The nearly 40-year-old Colorcraft got a makeover last year: a major rebranding accompanied by an overhaul of its corporate Web site. “It was not a cosmetic effort. We felt the need to assess our brand, to see if it truly represented our business interests in the 21st century,” says chairman Bundy Walker, who explains that taking stock and repositioning an established name like Colorcraft is crucial to meeting new challenges that have emerged in the print manufacturing and publishing industries. “We concluded that rebranding was called for. We brought in a corporate consultant and a team of design professionals to spearhead the effort.”
Walker adds, “The most important part of this process was the participation of both clients and staff from the outset. For instance, in designing the Web site, we consulted our clients on the type of information they would find useful, while our staff were surveyed to determine the type of content that would help them serve clients more efficiently and effectively. This led to a content-rich, user-friendly site that is helpful to our clients—existing and potential, from multinationals to self- and independent publishers.” The multifaceted rebranding project was accomplished in stages over a five-month period. Aside from the revamped Web site, a new corporate identity was created, along with marketing collaterals, a pop-up quick fact guide to the company, stationery, etc.
The familiar double-C motif long associated with the company is retained, albeit in a different color scheme: dark lime green, the color of choice, balanced by a more corporate dark blue. “Our consultant and design team undertook comprehensive research into the most frequently used colors in corporate identities while working on the logo. The end result is a logo that is both refreshing and arresting in its design and color. Now, we have a strong corporate identity to support the tools implemented to assist our staff and clients. So far, the reaction to our rebranding effort has been very positive across the board. We are now seeing the dividends in terms of business growth and the way Colorcraft is perceived, by clients and by ourselves,” adds Walker, who has now turned her attention to the next big project: obtaining FSC-CoC certification. The new look (and feel) notwithstanding, Colorcraft remains focused on its core business of total project management of book and nonbook production (ranging from educational aids and board games to packaging).
CT Printing
The only newcomer in this review, seven-year-old CT Printing, was founded by Tsoi Tak, who is also the founder of Brilliant Circle Group, a China-based conglomerate with interests in tobacco, packaging and real estate. Interestingly, out of the group's 14 companies, CT is the only one that is export-oriented and that operates out of Hong Kong. “We may be a young company, but CT has certainly benefited from the combined experience and expertise of the group, especially in optimizing operational efficiency,” says general manager Eva Wu. Last year, 56% of CT's business came from the U.K. and Continental Europe. To serve that region, it has a four-person team based in Chester, England. Segment-wise, there is an almost equal split between three major product categories: hardcover books, softcover books and nonbook products.
A quick peek at its showroom shelves during PW's visit reveals a multitude of books sporting lenticular covers. Says sales and marketing manager William Chan, “This is one of our specialties, and there are two things that we always look out for in making these covers. Firstly, we make sure that the die-cut on the board is deep enough for the lenticular sheet to be fixed securely to the cover. Secondly, we ensure that our client specifies clearly the type of lenticular effect required—whether it is 3-D, animation or a combination of both—in order to speed up the sourcing process.” As we speak, Chan and his team are busy with a 12-volume American football series that requires dozens of sleeves and pockets to hold game programs, tickets, postcards and other paraphernalia.
At CT's Shenzhen facility, there are presently 13 presses, ranging from 2-color to 8-color MAN Roland and Heidelberg, which are supported by three CtP systems. Aggressive expansion is underway for the 1,200-strong company. An additional 97,000-square-foot of production space and two dormitories are under construction. The new five-story production facility, scheduled to be operational by the end of 2009, will eventually house five 4-color and two 8-color Heidelberg and three 6-color MAN Roland presses. The capacity expansion is accompanied by vigorous efforts to secure the necessary certifications and standards, among which is the FSC certification, which it received six months ago. Says Chan, “Besides the areas of quality, safety and social accountability, we also participate in ETI [Ethical Trade Initiative], which counts Marks & Spencer, WH Smith, the Body Shop and many other European companies as its members.”
Commenting on CT's future plans, Tsoi says, “We aim to make CT a global brand and to build it into a competitive company with high adaptability for the ever-changing business environment. We intend for CT to be around for a long time.”
CTPS
“We continue to focus on lightweight printing, specifically in two-color and four-color,” says global business director John Currie, who recently printed the four-color Collins Cobuild dictionaries on 45 gsm stock instead of 64 gsm. “Professional and medical titles with high page counts, say 1,000 to 2,000 pages, generally require much lighter grades, while thick higher-ed titles would invariably go for 64 gsm or slightly lower.” High-volume printing is also making regular appearances at CTPS. Pointing to a two-volume medical journal with a print run of 90,000 copies currently in production, Currie says, “Such projects are usually printed on heat-set web offset. But upon seeing the print sharpness and quality gains that we can achieve using perfecting presses, the client decided to print with us.”
Last March, one large-format KBA perfector, the first installation of this press in Asia Pacific, is added to its existing line-up of 24 perfectors; according to Heidelberg, CTPS now has the largest placement of perfectors for book production in China. “The adoption of large-format printing is a natural progression and part of our three-year strategic investment program. The diversity in our current line-up provides the flexibility to handle print runs much larger than the usual 2,000 to 8,000 copies. We are also better placed for synergized rollouts as and when required,” says CEO Peter Tse. “Three new Dainippon Screen CtP systems have also been added, and all these installations are necessary to support the organic growth from our key customers. Our ability to recognize market opportunities—such as those in higher-ed and bible printing—and understand the needs of those segments has stood us in good stead. However, current industry challenges and market conditions leave no room for complacency. As such, we continue to pursue opportunities that are aligned with our manufacturing profile and capabilities.”
Now that European travel guide publishers have had a taste of the high quality standards that CTPS and other Hong Kong/China manufacturers can deliver—which surpass even those of their domestic printers—business from that region has grown. “On the Latin America side, the strength of their currencies against the greenback is key to offshoring decisions. It is also fair to say that we deliver better quality than what these publishers usually receive,” adds Currie, who also notes that pricing remains a main deciding factor for publishers regardless of their location. “We continue to focus on improving production efficiencies, hence the new presses and the streamlined workflow to combat rising operational and material costs. On the whole, publishers are more receptive to paper price hikes but less so to higher manufacturing costs. At CTPS, continuous evaluation of our business profile and maintaining a balanced portfolio to avoid being overly exposed to price-sensitive work is our chief concern.”
Everbest
FSC is a weighty topic—just ask deputy CEO Ken Chung, whose team has just completed one big 580-page project using heavy FSC stock. “Practically every other page in this 19.5”x13.5” book is a spot-UV spread, and the finished product must have weighed as much as any of our bindery workers,” quips Chung. “For the cover, our client wanted to use special leather. But leather choices are somewhat limited in China, and importing it was not an option since the process often turns complex and time-consuming. We eventually went for basic cowhide with a distressed look. Our client loves it.” The rounded back posed a different sort of challenge: pressure applied during the back-rounding process made the UV-varnished pages stick to each other. “It was ultimately down to perseverance and learning as we went along.”
Turning back to FSC paper, Chung reveals that there is a short supply. “For the publishing industry, this has become a chicken-and-egg situation. Since FSC stock costs more and takes longer to procure, most publishers are apprehensive about using it. The low demand in turn has resulted in weak supply.” For children's book publishers who want to use FSC paper, they may not be able to do so. Explains Chung, “FSC regulations stipulate that, to carry its logo, the finished product must contain more than 50% FSC paper in weight. Most thin children's books do not qualify since the case boards, made of recycled materials, usually weigh more than the text paper.”
Everbest indents paper in special-sized rolls and sheets for economic reasons. “Paper prices have increased by roughly 20% from a year ago; but as long as everybody is paying more or less the same price, it is a level playing field. However, other costs have gone up as well; and whenever prices go up, customers would start shopping around. They may end up going to less scrupulous printers hungry for work or who undercut just to get their foot in the door. There is not much we can do about that,” laments Chung, except to exercise tight overhead control, make efficient use of materials, and keep a close eye on the latest and environmental-friendly technology. “There is no doubt that our industry is going through another periodic shake-up. Maybe the industry consolidation is a good thing, maybe not. Those with a strong foundation will survive, as clichéd as it sounds. On second thought, less competition in the marketplace may mean that we can charge more 'normal' prices,” he adds, referring to the cost-driven and price-sensitive publishing industry.
Hung Hing
Slow and steady is the way Hung Hing's Heshan plant is expanding. “We currently have 1,800 people and eight presses on the floor, including two 8-color perfectors, plus one Kolbus case-binding line,” says managing director Matthew Yum, who has just got his production facilities PEFC certified. “In recent months, our customers are noticeably more demanding on environmental issues. It follows then that we are seeing more requests for FSC paper and for greener processes and products such as soy inks and energy curing. Such requirements are mostly customer and product specific. For us, what is most important is to stay ahead of the game and to be able to comply with such demands on short notice. We are prepared—nothing will take our R&D people by surprise.” As one of the most eco-friendly suppliers in town, Hung Hing's operations have long used cartons and boards containing more than 70% PCW (post-consumer waste), although this is not stated on the packaging. Having its own corrugating division, needless to say, has much to do with this move.
Munich-based Harald Peter provides more insight: “Strict adherence to eco-friendly manufacturing practices and material use is definitely a requirement that is here to stay. Consequently, only manufacturers who are prepared and equipped to cope with these demands will survive. At Hung Hing, compliance to these technically challenging requirements is part and parcel of our corporate planning. We have in-house labs for testing from raw materials all the way to finished goods. It gives our customers the necessary assurance that products made at Hung Hing comply with all regional restrictions and legislation, no matter which corner of the globe the products are shipped to.” Peter and his team are experiencing healthy growth from their European clientele, including those from Italy and Eastern Europe. “Despite rising prices, these customers particularly appreciate the unique spectrum of skills and services as well as the high quality and level of service that we provide, something no single European printer can offer at any price. Further growth comes from customers whose previous Asian suppliers have closed down as a result of the ongoing industry consolidation and intensifying competition.”
As such, private equity group CVC's acquisition of shares amounting to $110 million could not have come at a better time. “This capital injection will put us in a great position to capture any opportunity arising from the ongoing industry consolidation,” says Yum, whose family still owns about 33% of the company. Adds Peter, “Our bigger clients appreciate the fact that we will be expanding and offering more capacity for their projects. As it is, our Munich office is already planning for bigger space to accommodate more personnel.”
Leo Paper Group
A commitment to green practices does not come any stronger than this: all 16 laminators at Leo Paper are water-based. “Reducing VOC emission is the main goal. We also use an automatic blanket washing system for our offset presses and active carbon filters in our silk-screen room. Such eco-friendly installations are necessary to protect the health of our employees and the community at large,” says sales director Kelly Fok, who is just as concerned with corporate citizenship as with regulatory compliance.
To protect clients and end consumers, a comprehensive product safety management system to control the use of heavy metals, toxic chemicals and sharp objects in its products has long been implemented. “Our in-house laboratory, for instance, conduct heavy metal analyses on raw materials and use-and-abuse tests on toys. Our team of 200 quality assurance officers inspects raw materials, work-in-process as well as finished goods,” adds Fok. “We recently restructured our production lines to enhance quality inspection, problem detection and problem solving. So far, we have seen significant improvement in production efficiencies and reduction in product defects.”
Turning to logistics, there is an RFID (radio frequency identification) system that tracks and traces nearly 3,000 pallets at any given time. Previously employed in the finished goods area, the inspection center and warehouses, it has been extended to the cargo loading bay. “This completes the finished goods management cycle. Now, information captured at the dock door is fed into our ERP [enterprise resource planning] system and then packing lists and invoices are automatically generated. It saves time and improves data accuracy,” says Fok, adding that the company is also planning to implement the Global Security Verification (GSV) program. “We have set up C-TPAT procedures since 2005 that consolidate the requirements from our major clients, but at this juncture it is not possible for any China-based enterprise to obtain this certification directly from the U.S. Customs and Border Protection. GSV, which is recognized by major organizations, is our next best alternative.”
Transitioning from an information-based enterprise to one that is knowledge-based is another focus at Leo Paper. “We want to cultivate a culture of sharing and learning among our staff. We believe that it will enhance their production or service skills and, ultimately, strengthen our position in the industry.” In terms of facilities, its new Jiangxi and Shanghai plants are now up and running, catering mostly to the local market but with a certain segment reserved for export books. At the same time, a brand new factory within its Heshan complex supplies corrugated boxes to support its packaging business. “It's all about extending our supply chain,” Fok declares.
Locomotive
For director Sarah Shrimplin, “safe” has an ever-changing definition. “Safety regulations are monitored and updated continuously. What is deemed 'safe' today may not be considered in the same light tomorrow, and this presents quite a challenge for plush-and-plastic manufacturers like us and for our clients.” Another challenge, says Shrimplin, is the longer time required to carry out the necessary safety tests, adding to the pressure of meeting the just-in-time delivery requirement of most publishers today. “Now that laboratories are facing increased workload as well as having to pay more attention to specific safety areas, a quick five-day turnaround is no longer possible. Just recently, we had to wait a full six weeks for an EN71 Part 9 test to be concluded successfully.”
At Locomotive, varied and complex safety tests are conducted. For novelty books, there is EN71 or ASTM, plus cadmium, phthalate and AZO content tests; for products containing electronic components, RoHS is the typical test. “All these tests are time-consuming and costly,” adds Shrimplin. “The large toy recall in the U.S. last year has made publishers more wary about developing their own products and opting instead to buy through packagers. With typical safety testing fees amounting to several thousand dollars per title, it simply boils down to economics. Unless you have a high print run, and confident of the product's sales potential, the development costs of a new product can be off-putting once you factor in rising production costs and pricey safety tests.”
Shrimplin also notes that environmental consciousness is slowly crossing over into the plush-and-plastic segment. “Packaging is the main focus of the greening drive right now, but we are seeing more requests for organic and fair-trade materials. This trend is very much in its infancy though. Costs aside, meeting the required safety standards for using such materials presents some difficulty. Edible inks, for instance, are much harder to 'fix,' thus presenting a problem in saliva tests.”
Order-wise, Locomotive continues to see strong demand from Eastern European countries. “We recently added Uzbekistan and Lithuania to our destination list,” says Shrimplin. “Interestingly, the orders from these emerging economies are quite large with several in excess of 200,000 copies. This we attribute to the region's strong growth, which provides the disposable income for such 'luxuries.' We are definitely looking forward to the time when the middle classes of the world's two biggest countries—India and China—are able, and ready, to do the same.”
Magnum Offset
Blaming it on the weather is not a lame excuse for Magnum, as a travel book on boutique hotels tells the story. Recalls business development manager Anita Lam, “The production of this title using 157-gsm matte-art paper was not tricky at all, and the advance copies went to our New York clients in January as planned. They were happy with the final product—until the copies curled up a few days later. The run-ons in our office, however, stayed perfectly flat. We didn't know what caused the problem, but it was definitely not production related.” Lam and her team decided to go ahead and ship the bulk copies anyway, but they would have to solve the problem before the boat reached the port. By then, the culprit had been pinned down: it was the severe winter in New York resulting in extreme temperature and humidity differences between the indoor and outdoor environments. “We also found that individually shrink-wrapping the copies kept the humidity inside at a constant level. So we had our distributor redirect the shipment to a bindery in New York for shrink-wrapping and then redistribution. Our extensive network of contacts allowed us to respond quickly and effectively in this case, weather notwithstanding.”
In contrast, the challenge presented by a concertina-fold five-color art book was in its production, from start to finish. “We had to make sure all the 33 signatures—printed with a solid Pantone background—were glued together seamlessly,” says Lam. To avoid white gaps, the bleed of the first and last pages of each signature was extended. “However, after manual binding, there were still some gaps showing, and we resorted to using Pantone color pencils to cover them—something we had never done before. That was a great experience and we learned a lot from it.”
Projects aside, Magnum is busy installing more efficient and greener tools, electronic bluelines and ink optimization being two recent additions. “Electronic bluelines enable our clients to proof pages online, allowing a faster, more cost-effective and greener workflow. As for ink optimization, the inking software uses a sophisticated color algorithm to reduce the usage of the more expensive cyan, magenta and yellow by replacing them with black. For the client, this increased use of black, which has no reflective quality, reduces color variation under different types of lighting. For us, it brings down ink usage, wastage and costs, and speeds up the proofing process.” Magnum is believed to be the only Hong Kong printer using Amigo CtP plates, which require far less chemical to develop and are therefore more eco-friendly. Adds Lam, “They are more expensive, but this is outweighed by the environmental benefits.”
Midas
Hiroshige, featuring one of Japan's woodblock print masters, was Midas's most complex project last year. The 560-page large-format (34 cm x 42.5 cm) publication also comes with Japanese binding and a silk-wrapped case. “Sourcing silk that is suitable for printing was part of the challenge. On the printing press, the material does not lie flat, unlike paper, and thus may easily jam up the rollers. Its surface density also affects the print quality. For these reasons, we had to adjust the printing speed and screen resolution accordingly,” says general manager Andrew Hsu. “Inside, the 120 large-size illustrations laid out on spreads required utmost precision in printing and binding. We also had to strengthen the two-layered fancy paper cover by laminating the interior surface.”
As one of the few Q-Mark certified companies in Hong Kong, Midas prides itself on its quality and service standards. “We know we are not the cheapest kid on the block, but price has never been our differentiating factor anyway. Quality and reliability is,” emphasizes Hsu, whose company was FSC-certified last November. “The same goes for eco-friendliness. We have long used greener products and processes, such as UV coating, BOPP thermal lamination film (which requires no solvent-based adhesive), and soft proofing at our facilities. We even installed a spray powder collection machine for our printing presses. All these methods are used to ensure that the VOC content in the printing materials is kept to the lowest possible degree.”
Meanwhile, its R&D team is busy working on several newly patented products, one of which is an auto-reading book. Explains Hsu, “There are two mainstream methods used to produce sound effects in books or other paper products: a trigger-and-pull mechanism, as used in musical greeting cards, and a magnetic mechanism. Our method employs RFID technology, similar to that of Hong Kong's transportation system. No switch is required to trigger the audio effects. The technology also allows us to store a larger amount of data as compared to the two mainstream methods.” The R&D team has also developed rub-on transfer postcards, fabric bags and scented bookmarks (incorporating encapsulated scented inks made of wine, mint, black pepper, coffee, apple, etc.). “These are not new products in the market, but they are rather expensive to produce. Our goal is to make them more cost-effective to produce in volume and to find novel ways to include them as components or accessories in a book.”
Millenium
(robertsabuda.com/Millenium.asp)
This is a three-year-old company going on 30. Its managing director, Samuel Chung, is no stranger to print buyers worldwide, especially those into complex pop-up titles. Naturally, sophisticated pop-up book production is Millenium's main focus. “This is a complex product segment. But it is also one with less competition, which means a greater potential for higher profit margins,” says Chung, whose senior staff boast more than 20 years' experience in this segment. “Our biggest differentiating factor is our ability to combine color management know-how with hand-assembly expertise to produce pop-ups that have a high 'wow' factor.” And judging by its recent high-profile projects—including Gallop! A Scanimation Picture Book and Matthew Reinhart's Star Wars pop-up—“wow” is indeed the word. Pop-ups aside, Millenium is also into variety: board books (including those with sound and light modules, one Chung specialty that can be traced back to his Excel United days), product sample catalogs (of wallpaper, carpet, blinds, etc.), commercial printing (pop-up inserts for magazines), greeting cards, boxed sets, calendars and illustrated hardcovers and paperbacks. Market-wise, about 70% of its current business comes from the U.S.
The 4,500-strong Millenium has two facilities, located in Panyu and Yangjiang, that boast mostly 5- and 6-color Komori and 6- and 8-color Heidelberg presses, one brand new 6-color Heidelberg UV press being reserved mainly for printing lenticular and other substrates. Says Chung, “We have commissioned four more presses for 2009 installation. And by the time this report is published, an additional facility to house 2,000 workers would have been up and running.”
For Chung, the biggest change in the print manufacturing industry over the past five years has been the concern with codes of conduct. “Millenium has embraced corporate social responsibility—to be fair, green and transparent—since day one. It is therefore not surprising that within a short time we became approved vendors of Disney, McDonald's and Target. We are also ICTI and ISO 9001 certified; and as we speak, my team is putting in place the procedures for ISO 14001 and FSC certification.” In the meantime, Chung is busy tackling rising production costs. “Given the volatility of labor and material costs, we can only lock in our prices for 60 days. In the past, it was three or even six months. But then again, average monthly wages used to be 200 yuan per worker; now, it is US$200. The only way to get around this cost issue is to keep improving our production efficiencies and capabilities through stricter cost controls and continuous technology upgrades.”
Palace Press
Giving consumers more bang for their buck is the principle underlying Palace Press's many value-added high-profile projects. The recent Star Wars: Frames, with its six 240-page 11”x22” volumes in a custom-made inlaid wood case, is one great example. “The extra-large landscape format, which requires manual sewing and binding, captures the original wide-screen format pioneered by George Lucas for his Star Wars films. Inside, the 138 film frames featured, each personally selected by Lucas, were taken directly from Industrial Light and Magic's master files, with no retouching other than RGB—CMYK conversion for printing. Another unique feature is that, to provide a true sense of cinematic storytelling, no text accompanies each frame,” says president and CEO Raoul Goff. Fans and collectors alike would be delighted with the two priceless sculpted cast iron medallions of Yoda and Darth Vader (mounted on the sides of the case) and the numbered bookplate signed by Lucas.
For Goff, two issues must be considered in every project undertaken. “Firstly, we try to publish only titles that have a lasting value. We want consumers to have a book that will become a permanent part of their libraries and their lives. Secondly, we know that not all technologies and processes we use are 'clean,' but we stay abreast of changes in our supply chain and implement eco-friendly technologies when they make sense, aesthetically, environmentally and economically,” adds Goff, who practices what he preaches through the environmental advocacy promoted by Palace's Earth Aware imprint. “However, in the scheme of things, everything has its place. Consider soy inks, which are cheaper and easier to recycle, and are used largely in trade books and periodicals; they still do not have the vibrancy of metal- and petroleum-based inks when applied onto coated sheets in photography-based books.” Aware that usage of non-soy inks enlarges the company's carbon footprint, Goff has partnered with American Forests' Global ReLeaf Campaign to replant each tree that is used in his projects. His company also actively supports the organization Roots for Peace in its effort to remove land mines and return the land to its original use via sustainable farming and forestry.
Thus said, sourcing for greener products is ongoing at Palace Press. “We are closely monitoring the progress of stone paper, synthetic paper, grass-based paper, etc. Some are not quite ready for commercial use, while others are only applicable for specific uses.” A holistic approach best describes Goff's business stance. “We are constantly looking at new products, new suppliers, and perfecting our capabilities and services. We try to pair up each project with the right manufacturer and materials.” In the meantime, its collection of awards and trophies continues to grow, having swept up 24, including four Benny and six IPBA awards, just six months into the year.
Regal Printing
Regal is into Sex and the City, too. Well, to be precise, the company was called to manufacture one complex DVD boxed set of the TV series. Says managing director Maurice Kwan, “The prototyping took us half a year. We started with a book format but ended up with a lidded tower box of seven little drawers—one for each season—each containing a hard-case DVD pack that has eye-catching full-color printing with matte lamination and spot UV.” But there was an even more challenging project in store for Team Regal. “We received concept sketches for a grayboard slipcase that resides and rotates within an outer frame, and were asked to submit the mock-up in a couple of weeks. Our team did not immediately jump on it, as past experience told us that the concept, while novel, would not work without a lot of tests and forethought. Sure enough, one great-looking mock-up made using 3 mm grayboard that the client received within three days from one of our counterparts fell apart soon upon testing.” In due course, Kwan's team handed in their mock-up, made of wood instead of gray board, and promptly won the order. “We believe that spending time to understand what the client wants to achieve is crucial. We then set out to make something workable that can be reproduced in volume within budget and without sacrificing quality. We strive to keep the client, its requirements and its end consumers in mind.”
This commitment has also prompted Kwan to keep upgrading his production floors and investing in newer and more efficient technologies. Postpress capabilities have been at the top of his mind when planning the latest investments. A Martini Long Binder that can produce 40,000 softcovers per day was installed in, surprisingly, his 120-strong Hong Kong factory last month. For his Foshan plant, he added an automated inline glittering machine with spot UV capabilities. “We are seeing more requests for secondary processes and special effects, for which we need to have in-house capabilities that allow faster turnaround with better process control and quality.” Kwan has also put together a small team of 20 hand-assembly workers in Hong Kong to handle urgent jobs.
The year, Kwan observes, did not start out well for the industry. “The pre—Lunar New Year winter storms left the Guangdong power grid in tatters. I ended up buying two generators, and the fuel alone will raise my overhead by HKD1.5 million this year. Cost control is always an issue, isn't it? We have to work hard to maintain our profit margins and control costs. But then again, everyone knows that this has always been a very hardworking industry.”
Regent
Sky-high oil prices and tight raw material supply, says managing director George Tai, have much to do with the present volatility in the Hong Kong/China print manufacturing industry. “They push up the cost of everything so fast that the printing industry as a whole is simply unable to timely factor these increases into our prices. As such, many print manufacturers are facing serious challenges,” adds Tai, who has long predicted that 10% of the printers would go under and 30% would be in financial deep water by mid-2008. “The rest will face an uphill battle. It's a cliché, but only the strong and fundamentally healthy will survive to see 2009.” A sobering prediction indeed; but judging from recent industry upheavals, it is not too far off the mark. For Tai, trimming 10% off overhead expenses is on his wish list—“one that is becoming more difficult to achieve owing to the high inflation in Hong Kong and China.”
Still, print brokerage Regent did fairly well in 2007. “I know this year will still be a profitable one, but how good the bottom line will be is the biggest unknown. It's reasonable to say that every big project involving lots of paper and capacity will require careful handling. We see much longer lead time for indenting paper and for sourcing printers since several have closed or scaled down their operations. Close collaboration with our clients and suppliers is more crucial than ever.” But not everything is doom and gloom. The flighty euro has prodded more European publishing houses to seek out Hong Kong/China suppliers. Adds Tai, “Italian printers no longer enjoy government subsidies, while French and German publishers are looking at Hong Kong/China to slash manufacturing costs. Unfortunately, the untimely closure of some printers would mean reduced capacity and a potentially crazy peak season later in the year.”
For operations director Tina Wong, complex book-plus projects continue to pass through her door despite rising costs and other troubles plaguing the industry. Take One-Skein Wonders, a kit with everything that one would need to learn knitting: “The biggest challenge was in placing the components—a skein of wool/alpaca blend yarn, a pair of knitting needles, a crochet hook and a 240-page limp-bound book—within the box. We also had to ensure maximum visibility of these components through the windows and yet leave enough space on the box for the promotional copy.” The packaging itself was no less problematic, Wong notes: “We tested several box designs before finding one that would not 'somersault' but stay put on the display shelf.”
WKT
Knowing thyself is part of WKT's credo, as marketing director Jeremy Kuo's comments demonstrate: “Our projects tend to be much more book than toy or labyrinthine pop-up. If a publisher has a project where reproduction quality is vital (we are a G7-certified printer) and wishes to enhance the product with some extra features, then we are the right choice.” By local standards, WKT's hand-assembly team is not large, and the company's strength lies in producing high-quality books, both regular ones and those requiring some handwork. “We are not that interested in extremely complex projects, and we may not have enough hands to comfortably accommodate them. We are happy to leave such projects to those better suited to handle them.”
In this age of mergers, acquisitions and private equity buyouts, 60-plus years is an eternity for a family-owned print manufacturer like WKT. “We are still here, and we intend to go on for much, much longer. Our business keeps growing strongly, and we see that trend continuing,” says Kuo, adding that reliability and longevity are valuable assets to his clients. “In today's ever-changing circumstances, we like to think that we are a supplier which our clients can always rely on.” And all clients want the best deal they can get from reputable suppliers that can meet all their needs: great price, good service, quality, reliability and, in a more recent context, environmental friendliness and product safety. “ISO 14001, ASTM and phthalates-free products are becoming just as important as price and quality to our clients, and we make every effort to satisfy their requirements.” As for green products and processes, Kuo finds the experience of printing using soy-based inks, on virgin or recycled paper, surprisingly uneventful. WKT has offered aqueous coating for some time, but “not all projects requiring varnishing lend themselves to this more eco-friendly option.” Price-wise, no client likes to pay more, least of all publishers. “Where necessary, we have had to incorporate the cost increases from our suppliers. There is no other way; we have to pass on the higher cost.”
While some print manufacturers are cutting back investment, WKT is in the process of installing two Heidelberg 8-color presses and replacing its much-publicized 10-color MAN Roland press, an asset that has reinforced its multi-edition printing capabilities. The replacement, a 10-color Heidelberg with a CutStar web sheeting system, will be up and running by August.
| Avoiding major logistical glitches is key to a hassle-free plant-hopping tour. While highways and expressways are all over the Pearl River Delta (where most print manufacturers are based), anywhere near city centers and main industrial sites are typically choked with traffic. Add to that the local governments' tendency to carry out ad hoc road improvement works without posting proper notice, and the one-way shortcut that you gleefully took may well turn out to be a dead end. Solicit your supplier's help at the very start, and chances are you will be offered chauffeur service (within reason, of course). The best way to plan your itinerary is to follow one particular compass point at a time. Divide the map into four quadrants and see where the plants are located. Do not attempt Pinghu (south), Dashi (northwest) and Boluo (northeast) on the same day. Aside from running ragged trying to be on time, you are not doing yourself any favors by zipping through the plants. Instead, consider making either Dongguan or Guangzhou your base while visiting printers in those areas, and then moving down to Shenzhen to do the same. Given the new visa restrictions imposed by Beijing ahead of the Olympics Games, it is definitely prudent to stay in the mainland instead of crisscrossing the border with Hong Kong. Accommodation-wise, there is no dearth of five-star hotels or international chains. Guangzhou has the ritzy and the grand—Ritz-Charlton, Grand Hyatt, Shangri-la, Westin, and China by Marriot—while Dongguan offers Sheraton, Hyatt Regency, Windsor Park and Royal Garden. Down in Shenzhen, the selection is even wider with local hotels competing alongside Shangri-la and Marco Polo. Visitors tend to gravitate toward international chains, which charge less than 40% of the standard rates in the U.S. for a very spacious and modern room that comes with all the amenities they could possibly need. At local hotels, be prepared to be amazed and bemused by a hodgepodge of cultural influences: Balinese furniture with a decidedly Baroque decor, or saluting guards in kilts and knee-high socks (sans the bagpipes). Then there are also suppliers further afield, such as Leo Paper, with their suite of guest rooms, executive kitchens and all the pampering you need. The opposite map pinpoints the location of major export plants, and the distance (in minutes) to get there by car from the nearest train station or ferry terminal. Of course, you may also opt to fly out of Hong Kong to Guangzhou or Shenzhen. Whichever mode of transportation and choice of accommodation, you are sure to be amazed by your hosts and their facilities. Happy visiting, and enjoy your yum cha (tea drinking) sessions! |
| For many visitors and buyers, the Third Hong Kong International Printing and Packaging Fair (April 28—May 1) offered a profusion of innovative and exciting products and technologies. PW was no less enchanted. Here are some that caught our attention (and, no, this should not be taken as an endorsement): Anderson Group's honeycomb paper products are made of lightweight recycled and eco-friendly materials. It offers a honeycomb pallet as a viable alternative to the conventional wooden type. “Scent marketing” by design and communications company Jungle Workshop has resulted in the development of scented paper products sold under the brand name Make Scents. Xitronic's varied paper and wooden box and packaging products come in interesting colors, shapes and designs. Display racks, gifts and premium items are also available. A magnet haven, Earth-Panda has products such as bonded neodymium in rust-free complex shapes and rubber magnets that can be stamped, slit, punched or laminated. Magnetic dart games, writing boards and maps are just some of the common applications. Vision3D's Power Illusion software gives users total control of the visibility, opacity, parallax, position, scale and rotation of every layer in a lenticular design, enabling a mixture of motions, zooms, flips and 3-D animation. Lenticular products are also offered under the brand name LenStar. Anti-counterfeiting technology from Digigraphics can be applied on any printable medium using standard printing inks and processes. The sophisticated digital security images can only be revealed with a special security checker. Nicole Environmental Services' TDP (Totally Degradable Plastics) incorporates a patented additive that makes the plastics degrade into carbon dioxide and water without releasing any toxic byproducts when exposed to heat, sunlight or mechanical stress. According to the fair organizers, Hong Kong Trade Development Council (HKTDC) and CIEC Exhibition Company, exhibitors have grown in number from 299 in the inaugural 2006 fair to this year's 375. A strong showing by mainland Chinese suppliers was evident with 17 of the country's top 100 printers participating, including Yuto Printing, Artron Enterprises, Shanghai Zidan Printing, Shanghai People's Printing Factory No. 8, Shenzhen SGY Printing and Shenzhen Nine Stars Printing. In total, 56 buying missions from 32 countries visited the four-day event, which focused on two product zones: digital printing and office automation/equipment, and integrated prepress services. American Greetings, Hallmark, Mattel, Hasbro, Conair and Mulberry were among the 11,000 buyers. A series of forums and seminars introducing the latest printing technology and exploring the future of print were held. None, however, was more surprising (and timely) than Greenpeace's talk on the market potential of green publishing. Fifty winning entries from the 19th Hong Kong Print Awards were also artfully showcased amid numerous Do Not Touch signs and under watchful eyes. (PW, overwhelmed by moments of curiosity, did send several of the security personnel into high alert.) For more details on the next fair, check out www.hkprintpackfair.com. |
| Occupying the top slot on the New York Times children's bestseller list for 33 weeks (and counting) is just one of the accolades received by Gallop! An ingenious low-tech book of motion created by inventor-artist-filmmaker Rufus Butler Seder, it features Scanimation, a patented technology, using the humble board paper and acetate slide to pack a high “oomph” factor. Published by Workman, Gallop! is manufactured in China and, interestingly enough, was Seder's first project with a Hong Kong/China print manufacturer. The offshore decision did give him some anxious moments at the initial stage. Says Seder, “My concerns were more on the proprietary knowledge, because this unique book is a patented invention and not just an author's work. Therefore, the decision to manufacture it offshore was a calculated risk that came with significant concerns about backdoor sales.” But he also knew that if Gallop! became a hit, the printer would take great care to protect the proprietary knowledge because they would want to be the sole Scanimation/Seder book manufacturer for maybe a long time to come. Needless to say, that risk has paid off big time: 1.6 million copies have since rolled off the production line, with more moving through it. It seems that kids just cannot get enough of animals galloping, running, swinging, swimming, etc., on the pages. Seder says, “The printer is very proud of the fact that they are the only one with the technology and the know-how to produce the title.” For Doug Wolff, Workman's senior production manager, working with an experienced artist like Seder has many advantages. “We have his experience to guide us through the process, and that saves us time because he knows what would, or would not, work. This has helped us immensely in eliminating major prototyping issues.” Still, it took the Workman-Seder team six months to get to the final prototype. Equally time-consuming was the sourcing and testing of the numerous materials for the book. “Our printer was most helpful in sourcing special stocks and materials that were not readily available when we first started looking. They were able to find the right suppliers and then quickly establish relationships with them and secure the materials needed. We tested each and every material to make sure that they could withstand the rigorous printing and assembly processes. At this stage, we tackled issues such as warpage with certain materials when they came into contact with heat, and dot gain with printing on acetate. We also conducted numerous safety tests. Specific instructions were given to our printer to make sure the materials were phthalate-free and complied with all current safety regulations,” adds Wolff. “We made three trips to China to work out the kinks, and each time our printer was able to explore alternatives and offer solutions to problems that had cropped up.” From the outset, Wolff knew that Gallop! was not a book that could be rushed through hand-assembly. “The steps are precise and each one is crucial in making a final product that works just right. Skip one step or do it incorrectly, and the animation would not have the desired effect. Almost one year after its launch, we are still tweaking the manufacturing process. We just want to make Gallop! better and look the absolute best it can be. Our printer played a huge role in the development process.” The printer created tools to streamline the work processes and speed up the assembly line while delivering the desired effect as well as quality standards. At present, about 10,000 copies can be produced daily, but the production lead time may still take up to three months. During his brief stay in China to instruct the workers on the art of making the book, Seder was intrigued by their psychology and the way they learned. “When it was time for me to instruct them, dozens of workers appeared, seemingly out of nowhere; and as soon as I finished, they immediately broke up to work on parts of the construction. Organized chaos, I think, is the best way to describe the experience.” Thereafter, Seder became an unofficial part of the team, with the workers fully aware that he was there to help them make better books. “I was just another cog in the wheel, and that was fine with me.” Seder, who employs artists to hand-assemble his own products in the U.S., is suitably impressed with, and appreciative of, the organizational and work ethics shown by the print manufacturer and its workers. “Every table has a quality control person at it, and there are literally dozens of tables on the production floor. The amount of QC involved was astounding,” he says. Wolff confirms that there is 100% QC check on every Gallop! produced. Asked how he felt when holding the first copy hot off the press, Seder says, “It has to be 'Wow!' There is something about a book that is so different from anything else that I have made.” That sentiment is echoed by everybody involved in the publishing and manufacturing of Gallop! In the meantime, get ready to be further wowed by a Gallop! boxed card set and Seder's next Scanimation title (debuting in October), which features kids playing sports. and is called Swing! |
