You can call 2009 the year of recalibration, with print manufacturers and brokers going back to the drawing board and tweaking their plans to fit the current economic realities. For most, sales growth is but a pipe dream. Minimizing the impact of the U.S. financial crisis and the ensuing global tremors ranks top in priority.
For Hong Kong/China print manufacturers, lowering expectations while remaining optimistic and adopting wise words such as “fish while the water is murky” or “adapt to circumstances like water molding itself to the pitcher” is their modus operandi. They are busy checking out opportunities beyond the usual targets to see where their expertise can be best re-directed. For some, this means venturing into gift bags, stationery sets, product packaging and plush items. For others, it means approaching markets that they have so far avoided in favor of the familiar. Basically, it is time to pad up the portfolio and venture into the lesser known—for while being a specialist has its merits, being a generalist means spreading the risk.
Through it all, investment in better technology and faster machinery continues unabated, though the momentum has decelerated. The quest for higher efficiencies aside, newer machinery is crucial to meeting emerging market demands: shorter print runs, more inline processes, faster make-ready and more eco-friendly applications. Even in tough times when profits may be slim to nonexistent, sometimes keeping the machines chugging away even with little returns rather than letting them lay idle makes more financial sense.
Now that many publishers are strapped for cash and bankruptcy filings are on the rise, scrutinizing contracts and performing credit checks are becoming a crucial part of print suppliers' routine. You can't afford not to be careful these days, and thorough vetting makes perfect sense. But it goes both ways, for publishers are equally jittery about their supply chain ever since several unexpected closures rocked the industry back in 2007—2008.
But costs are coming down due to oversupply in this near-comatose global economy. Be it shipping, raw materials, land or rental, things are comparatively cheaper. Paper from European mills is now more affordable given the lower euro and shipping rates. Sending finished products to North America is less of a hassle because the docks are free of traffic. Accessories suppliers are clamoring for orders and thus willing to quote lower. Workers, unnerved by rising unemployment, are working harder than ever while they still have a job.
Needless to say, for publishers who do comparison shopping, this may be the best of times. There are also many North American print suppliers eager to help them pull back as many projects from Hong Kong/China as possible. Meanwhile, many publishers are now less gung-ho about upping the wow factor and more focused on bread-and-butter offerings. New projects are less attractive because of the associated risks and development costs, while repurposing old titles is more promising. Letting the content drive the design is making a strong comeback. Think of all this repositioning as forced spring cleaning; nobody likes it, but it has to be done.
That brings us back to fundamentals and a new balance. There is no substitute for great products, personalized supplier—client relationships and responsible investment tempered with reason and driven by optimism. It is no overstatement to say that the jolt from this financial crisis is creating a new and improved (and more rational) marketplace, and that the following 15 print suppliers are already meeting the challenges and opportunities this new order may bring.
Asia Pacific Offset
These are exciting times for president Andrew Clarke, with a new office in Spain and the chance to work on J.K. Rowling's The Tales of Beedle the Bard: Collector's Edition with Michael Reagan of Lionheart Books. “Beedle is one of our most challenging projects, with its ultra-short production lead time and intensive coordination with various component suppliers. We duplicated the original book and gave all items an antiquated look. For the slipcase, the leather was distressed and then buffed to create a two-tone effect. We were ecstatic to hear that the title was out of stock at Amazon.com even before it hit the port.”
For Clarke, 2008 was his best year in terms of sales volume, but the first quarter of 2009 saw sales slipping by 20%: “Business has steadily recovered since and should be back on track for the rest of the year. We have stepped up efforts to widen our client base to make up for the sales shortfall, and this is especially important with print runs dropping significantly.” Many clients, he adds, are putting projects on hold and confirming print quantities much later than usual. The latter presents a greater challenge, but “paper mills have been very flexible, and so far we have been able to catch up and deliver on schedule.” Clarke also sees greater solidarity among manufacturers, customers and suppliers. “This is definitely a time for loyalty and greater willingness to help one another,” he says. “And contrary to the perception that going green is taking a backseat to cost concerns during these tough times, many of our clients feel that being green provides an edge in the marketplace. In fact, our projects that use FSC and recycled papers have more than doubled over the previous year. Publisher Bardin & Marsee is also producing a new line of waterproof Bibles using DuraBooks, a product made of plastic resins and inorganic fillers and of which we are the exclusive printer.”
Clarke's goals for the rest of 2009 are clear-cut: maintain the market share and help clients in whichever way he can so that “we can all live to fight another day. Publishers and print manufacturers alike are working on the tightest margins in decades but quality remains key. So, by providing quality products on schedule and at the right price points, clients will keep coming back for more. Meanwhile, the response to our Barcelona office has been very positive, and we're looking forward to more projects from southern Europe soon.”
C&C Offset
The mood is celebratory as C&C plans to kick-start its 30th anniversary celebrations at the Frankfurt Book Fair later in the year. “The timing is perfect as China will be the fair's guest of honor. Also perfect, given the attention to global warming and eco-consciousness, is our main theme of green printing and environmental protection,” says managing director Ken Lee, whose company has registered a charity fund in Hong Kong to build schools in China's less developed areas and to support students furthering their studies in printing-related fields. “And given China's recent spate of natural disasters, we have also set aside monies to help our staff and their families in such emergencies.”
Turning back to green printing, Old Growth, a 168-page full-color book packed with 156 photographs, exemplifies the eco-friendly products that C&C manufactures. Printed using soy-based inks, the endpaper was 150gsm Greenery and Recycled FSC grade, and the case (and parts of the text) used PCW (post-consumer waste) Kraft paper. “This book came with two major challenges: creating a rectangular window on the front cover that cut across the spine to the back to show the sewing and gluing, and color-matching the illustrations printed on Kraft paper with those printed on matte art paper for the interior pages,” recalls deputy general manager Ivy Lam. Soy-based inks, continues Lam, “offer good rub resistance and durable gloss, and are better for recycling since the inks separate more easily than petroleum-based inks. However, the cost is about 25% to 30% higher.”
Another project, this time showcasing C&C's complex book capabilities, is a children's book with one spread simulating the womb. “It has a plastic pouch filled with distilled water and a printed cutout of a baby. It took us some time to find the right coloring agent for the pouch to give the water a slightly milky color. Needless to say, we did multiple testing on the material to make sure it passed all safety requirements,” adds Lam.
Lightweight printing—on as low as 33gsm Bible paper—is another growing segment at C&C. “Our strength, in addition to multicolor printing on our sheet-fed and eight-color web presses, lies in high-end printing such as those requiring high lines-per-inch or FM and AM screening,” adds Lee, stressing that his focus this year is on strengthening C&C's internal operation, building stronger relationships with clients and, hopefully, emerging from the global crisis with a much larger market share.
Colorcraft
Experience coupled with pragmatism has always been chairman Bundy Walker's philosophy for business success. Publishers, she says, know the benefits of having a partner on the ground to look after their interests. “Now that international travel has been curtailed, many publishers have to manage the production process via the phone or e-mail while trying to overcome time differences and communication problems from thousands of miles away. It is understandably difficult. We, on the other hand, have the advantage of proximity to the manufacturing site, which means our team can be on the factory floor within hours, reviewing the issues at hand, reporting the status, offering solutions and moving the production process along to meet the schedule.”
Colorcraft, Walker's print brokerage firm, and its clients are partners in the best sense of the word. “We provide relevant and timely advice and offer solutions to specific problems while nurturing our relationships with them. You can call it our value-added approach. A case in point: although we are not in the currency exchange business, we recognize that managing currency fluctuations can be a daunting task. As such, we maintain consistency by quoting only in Hong Kong or U.S. dollars. We also recommend that clients consult their banks about the possibility of forward buying in the designated currency for at least a percentage of the contract cost to help mitigate rate fluctuation risks,” says Walker, who adds that there are other areas of concern on which her team can advise or act on clients' behalf. “Product quality and timely delivery are crucial to publishers. And at Colorcraft, we have a reliable core group of printers in China, none of whom are at risk of closure, who can help us deliver quality products on time. We know that cheaper price exists elsewhere, but caveat emptor holds true here: you get what you pay for.”
Recent reductions in paper prices have been universally welcomed, says Walker, but “there is the other side of the coin. Labor costs in China have been rising, which is mandated by changes to its labor law. We ensure our clients are advised of these variables in a timely fashion so that they can make informed decisions regarding their projects.” She adds, “There is no doubt that the current global financial crisis poses challenges to the print and publishing industries as well as other sectors. But it's business as usual at Colorcraft. True to our Hong Kong roots, in risk we also read opportunity, for ourselves and for our clients.”
CT Printing
CT Printing has been buzzing with activities. Construction is now underway on a three-story factory building that will add 25,327 square meters of production space. Two dormitories will also be built later. An automatic case-binding line has been commissioned for the new factory. “With this new binding line, our daily production capacity for hardcovers will increase by 30,000 copies,” says chairman Tsoi Tak, who will also see a new two-color press and a sewing machine installed this year. “And as part of our plan to offer one-stop services, we have created a new division, CT Repro, to undertake graphic reproduction work. We have also formed a partnership with a Central European repro house.” Last March, its parent company, CT Holdings International, was successfully listed on the Hong Kong Stock Exchange. Soon after, its Hong Kong staff moved to a new office in Tsuen Wan that is double the previous office size.
Meanwhile, CT continues to excel in complex book-plus projects involving laborious handwork and manual binding. One such title that PW sees in its showroom has so many add-on components (envelopes, memorabilia, photos, etc.) that 50% of the pages require meticulous gluing and assembling besides specially sourced paper and materials. “It was a challenging project, especially with the late arrival of the files. But we managed to shorten the production process from the usual eight weeks to four weeks to meet the same deadline, as well as producing 145,000 copies in two versions,” adds Tsoi, whose company has expanded its business into nonbook products such as party goods, stationery sets, art sets and packaging boxes. “Last year, nonbook products represented a small portion, around 4% to 5%, of our sales turnover. But we foresee that this segment will grow substantially this year.” The U.S. market currently takes up less than 8% of CT's total sales, which means the U.S. financial crisis does not have a dramatic impact on its operations. Continues Tsoi, “Our product diversification strategy has successfully offset some of the losses due to the financial fallout, and we fully expect to see stable growth in 2009. Of course, our sales and marketing team would need to work harder and spend more effort on sustaining our business growth.”
Clients, says Tsoi, are becoming more cautious in controlling operating costs and print runs. “Minimizing their inventories means saving warehousing and manufacturing costs. But this leads to the need for more flexibility, and so many clients prefer to work with more nimble and flexible printers like CT.”
CTPS
The 64-inch Screen PlateRite Ultima 24000 CtP (computer-to-plate) system is just what CTPS needs to support its two large-format KBA presses. With dual plate-loading capabilities and twin-imaging heads, it produces one large plate (or two smaller ones) every three minutes. This machine, together with other Screen, Kodak and Lüscher XPose systems in its prepress division, can produce up to 50,000 plates per month. In comparison, there are only nine digital proofers around. “But this configuration is sufficient for our needs, as more clients are forgoing physical proofs, especially for full-color frontlist titles,” says global business director John Currie, whose clients, mostly SSTM and reference publishers, are printing 3,000 copies or less instead of 5,000 or 8,000 copies as was the case in previous years. “Inventory reduction efforts had started even before the global economic slowdown. However, they are reprinting more frequently than before.”
While agreeing that educational and reference books are more recession-proof than other categories, Currie adds that the sheer scale of the financial crisis has exceeded everyone's expectations. “The U.S. state adoption programs, for instance, have either been scaled down or delayed due to limited funding, while trade publishing has contracted significantly. Fortunately, as CTPS caters for short to medium print runs, we are in a much better position than most.” Interestingly, its new KBA presses and specialization in high-quality lightweight printing have expanded its travel guide business to 20% of its total turnover. Meanwhile, a new Kolbus softcover binding line has been added, and the blueprint is being finalized for the addition of 300,000 square feet of manufacturing space on an adjacent site. The construction will be carried out in phases over the next one and a half years.
As for challenges, Currie notes that “the devaluation of the Australian dollar, euro and Latin American currencies during the third quarter of 2008 meant that our contracts with many publishing clients had to be reappraised and renegotiated. Inevitably, some projects had moved back to their domestic suppliers. Still, even with slimmer cost savings, major publishers still prefer to print with us for reasons of project continuity and higher quality. The cheaper euro, incidentally, has made it much more attractive to purchase lightweight grades and specialist cover materials, especially for Bibles, from European sources. And this somewhat made up for the lower renegotiated quotes. But now that the euro has risen against the greenback, the picture is changing yet again.”
Hung Hing
At Hung Hing's Heshan facility, PW learns that the completed 50,000-square-meter phase one factory and a section of a dormitory complex that will eventually accommodate 3,000 workers are barely 10% of the whole picture. Even now, there are already about 2,000 workers, eight presses (including one seven-color Heidelberg and two eight-color Mitsubishi), 10 silk-screening machines, 17 hot-stamping presses and eight laminators. And each one of the five-story buildings has ample space for future expansion and floors constructed to withstand the expansion. “The plan is to ramp up production slowly and steadily in this tough economic climate,” says managing director Matthew Yum, always cautiously optimistic.
Amid all the brand-new production equipment, nothing attests to the greatest challenge facing children's product manufacturers than the testing laboratory. “The U.S. Consumer Product Safety Improvement Act 2008 has brought a lot of uncertainties to children's book publishers and, by default, to manufacturers like us. For publishers, their concerns are mostly about the longer time required for conducting the necessary tests and the additional cost of developing a new product that meets all safety requirements,” says Yum, whose lab team of graduates in chemistry and related disciplines conducts about 20 tests daily, including heavy metal tests, according to the requirements of a product's destination country for the target age group. Phthalate testing has recently been added. “This lab started operating in February and serves as the central lab for our Fuyong paper products facility as well.”
A bimonthly newsletter was launched last March that reports news, such as the Chinese government's tightening of regulations on products containing maps, and updates on various Hung Hing operations, such as its Wuxi plant catering for the domestic market. “We want to make sure our clients know about our company's expansion, new value-added services like design and paper engineering consultation, cost-cutting measures and streamlined operations, as well as our ongoing efforts to meet production challenges,” says Yum, who is also working with new COO David Eitemiller to improve the company's sales, production and IT systems for better deliveries, more efficient capacity utilization and real-time project tracking. “In the Pearl River Delta, there are factories that are better managed and have higher efficiency than anywhere else in the world. And Hung Hing aims to be one of them in the near future.”
Leo Paper Group
Its annual production capacity is staggering: 120 million casebound copies (printed on 10 casing-in binding lines and 16 case-making machines, all automatic, making it one of China's biggest casebound book printers), 72 million softbound copies (using five automatic perfect-binding lines) and 120 million paper bags. Nonproduction statistics are just as fascinating. “We have 190 toddlers in our 300-seat kindergarten and 48 chefs for the two super-canteens,” says sales director Kelly Fok.
Numbers aside, Leo has also been quick to implement the latest standards and processes for better quality and efficiency. “We became the first company in China to gain the Process Standard Offset [PSO] certification in December 2008. It means that our processes—including color management, file creation and usage and overall press control—are in full compliance with ISO 12647-2: 2007 printing standards,” adds Fok. Leo is also the very first (and so far the only) print manufacturer to implement RFID (radio frequency identification) and develop a 2D warehouse management system. “The latter runs on our artificial intelligence network and helps our staff to maximize warehouse space utilization and improve logistical operations. We are also using auto-guided vehicles in the warehouse to stack and retrieve goods. We plan to deploy the RFID technology on incoming raw materials and work-in-progress to track our orders using RFID-enabled recycled containers,” adds Fok, who reiterates that going green and lean is an ongoing priority at Leo, an FSC- and PEFC-certified company. “We have been eliminating visible and nonvisible wastes since 2006, and we are involving our clients to further eliminate waste in various areas such as product design, logistics and production planning. The goal is to be a zero-waste and carbon-neutral factory.”
For two years running (2008 and 2009), Leo Paper has been honored with the Pearl River Delta Environmental Grand Award and the Hong Kong Industry Grand Award for Environmental Performance. It was also recently recognized by governments and many multinational companies as a role model in environmental management.
Meanwhile, the factory complex, standing on a 6.5-million-square-foot piece of land, continues to grow, and it is not just about adding to its 90 presses. Leo Innovative Technology Research and Development Center will be completed by end of August, and within the next 12 months its Printing Technology Training Center will also be up and running. “Innovation has always been one of our core values. It underpins our commitment to adopting the latest and best technology and parallels China's policy on developing new leading technology,” adds Fok.
Locomotive
Some children's cloth books are becoming simpler at Locomotive. Explains director Sarah Shrimplin, “We have several clients who are cutting down on the number of materials or the amount of embroidery used, or, simpler still, removing one spread. Besides lowering manufacturing costs, such measures also reduce the number of safety tests required. And since every single type of fabric, color or ink used for a cloth book has to undergo tests, the savings are substantial. But a simple touch-and-feel book with embroidered outlines can still run up several thousand dollars of testing fees.”
Cloth books remain Locomotive's core business and continental Europe its largest market. “The mass market for cloth books in English-speaking countries is well developed and tends to favor simple cloth books. Outside of these territories, however, there is a larger market for high-end products,” adds Shrimplin, who is also seeing simpler paper-based books selling in higher quantities than in previous years.
Printing artwork on cloth, specifically four-color (CMYK) process printing, is getting more attention from publishers. “The technique, quality and resolution are not on the same high level as printing on paper. But the technology for printing CMYK on cloth has improved immensely over the last few years. Inks for cloth printing have stabilized, and low-order quantities in terms of yardage are now possible. That said, we have no objection to large production runs,” quips Shrimplin.
Adhering to the U.S. Consumer Product Safety Improvement Act is proving to be a challenging task. One good example is a recent project requiring four-color process printing for which all the materials had to be purchased beforehand in order to prepare printed samples for safety testing. However, while most of Shrimplin's European clients are happy to have the tests coordinated by Locomotive and conducted by Hong Kong laboratories, it was not the case for this large-scale project. “Given the heightened sensitivity to safety regulations among American consumers, the tests had to be carried out by our client using U.S. labs. The process took about two months, compared to around two weeks in Hong Kong. This means that the materials were standing idle and tying up money and warehouse space during this period. On top of it, we had to ensure that the materials were stored properly during the high humidity months. Then, once the tests were completed, it was a rush to make up for lost time, resulting in scheduling and production capacity problems. Thankfully, everything worked out in the end, though the gray in our hair had increased somewhat.”
Magnum Offset
A nonprofit project reiterates Magnum's stance on supporting efforts to address climate change. “We believe that business is not just about profit making, but also about social responsibilities and creating a better world. Furthermore, all printers need sustainable forests and renewable sources for long-term survival,” says business development manager Anita Lam, who originated the idea that Hong Kong printers should use their industry expertise to spread a united message for a global cause. “The first in a series, 31 Days in Laos is a photography book that transcends industry, cultural and geographic boundaries and emphasizes harmonic human existence on this planet.” Published last February with the support of the Hong Kong Printers Association as well as experts in the publishing and graphic arts industries, 31 Days was printed using FSC-certified paper and eco-friendly ink. “The proceeds, minus mailing costs, go to Trees for the Future. Each book, selling at $25, will help to plant 250 new trees.” Despite the tough economic times, public response has been positive: more than 700 copies of the 1,000 copies printed have been sold so far. (Information on this project can be found on www.31days.hk.)
Thinking green aside, Magnum is also thinking far ahead. It has purchased a piece of land in Humen for a new facility expected to be up and running by fourth quarter 2010. “The timing is perfect: we had a bargain on the land price and the downturn will allow us to save on construction costs. Incidentally, the Chinese government is building a new highway and train station within walking distance from our new plant, which will bring the facility even closer to our Hong Kong plant and headquarters,” adds Lam, who is planning for an environmental-friendly workplace with energy efficiency and reduced pollutant and carbon emissions.
At the same time, she is prepared for a 30% decline in overall sales volume this year. “One good thing is that our overheads are much lower compared to other, much larger printers, as we have fewer machines and people to maintain. We also have a healthy cash flow that guarantees stable material supply and allows us to provide favorable credit terms to our loyal clients,” says Lam, who holds firm to the policy of no layoffs or pay cuts even during tough times. “Let's put it this way: we can't expect our staff to be creative and think outside the box when they are worried about their livelihood or job stability. It's really that simple.”
Midas
Imagine a 13”×11” book with seven of its 20 full-page spreads constructed as pop-ups plus audio components housed within its covers. Sounds challenging? It was the project that took center stage at Midas last year. “For the covers, we had to add foam boards to hold the sound module mechanisms, two speakers and wires in place,” says deputy managing director Francis Kwok, whose in-house paper engineers had to collaborate with the client's design team every step of the way. “The dummy-making process took almost five months, but we have lost track of the many months that were spent on developing the final product prior to that.” During the production process, recalls Kwok, various quality checkpoints were set up along the assembly line so that “by the time the products finally left our doors, they had been thoroughly tested.”
Besides complex book-plus and high-end printing, which is Midas's forte, Kwok is also seeing an increased demand for secondary processes such as photochromatic ink for children's books and iron-on transfer printing for gifts and stationery kits. “Other secondary processes are more for food packaging, where stringent guidelines such as the use of chlorine-free paper and specialized glue have to be met. Such materials must pass the MSDS [Material Safety Data Sheets] compliance test,” he adds. “Interestingly, the higher quality demanded by packaging printing has significantly reduced the use of ink-curing agents, which sometimes contain toxic substances. For instance, non-ITX [isopropylthioxanthone] gloss varnish is now used to create spot UV effects. And with publishers asking for more eco-friendly materials, be they paper, glue or coating, we are seeing certain applications such as food-grade coating migrating over to books and children's products. Some of our publishing clients have also started requesting for GMP [Good Manufacturing Practice] room production control.”
Meanwhile, Midas Group has installed a new ERP (Enterprise Resources Planning) system to boost its operational efficiency, providing it with real-time information for just-in-time production. It has also been reorganizing its two production facilities in Huizhou and Dongguan to enable each to handle both books and paper products. “We have been relocating machinery from one plant to the other. The goal is to optimize the capacity at each plant, reduce overtime and lessen outsourcing during peak seasons. To expand, we have acquired a site that can house a factory complex with 120,000 square meters of manufacturing space in Shatian, Dongguan,” says Kwok, adding that, depending on the speed of economic recovery, Midas plans to start construction soon.
Palace Press
Palace Press continues its winning streak with 28 awards and 36 nominations (and counting) this year, including the Benny, IPPY Book Award (gold and bronze for design and coffee-table books), Nautilus Book Award (gold and grand winner) and Gold Ink. Its award-winning quality is evident in a coffee-table book featuring stunning photos of Paris. The 15.5”×13.5” landscape book contains 216 full-color pages overlaid by 108 printed vellum sheets with quotes from legendary figures. Each copy was bound by hand. A limited edition with a numbered and signed art print contained in a clamshell was also produced. The endsheets were printed in six colors and the clamshell, covered with silk-screened and foil-stamped cloth, had a die-cut gold metal charm affixed to it. “This is another example of the unique treatments and lavishly produced books we are known for,” says president and CEO Raoul Goff, who sees fewer new titles but more efforts in repurposing older titles from his publishing clients.
Goff continues: “Many publishers are also delaying buying decisions and estimating print runs more conservatively. Our challenge lies in reserving paper and capacity with printers while still making the deadline despite these delays.” For Goff, looking at all avenues, including new technology, to help everyone maneuver through these difficult times is a must. “For instance, instead of relying on more expensive printing and manufacturing techniques, we find innovative design solutions to shave costs while maintaining consistently superior quality.”
Clients, he adds, have become much more discerning and educated when it comes to knowing what they want. “While it's true that money is tight and people want to make sure their dollars are spent in the most effective way, we can offer alternatives which will stretch the dollar yet provide the special added value that Palace Press is known for.” While he continues to find China a very competitive manufacturing center from a cost and quality standpoint, Goff has built and maintained relationships with printers from India, Malaysia, Singapore and Thailand over the years. “These diverse relationships allow us to be independent and flexible in choosing printing partners to suit the project in hand.”
He and his staff have moved into Kerner Optical Building (formerly George Lucas's ILM office) in San Rafael, Calif. This relocation, Goff says, “affords Palace Press greater opportunities to build our expertise through collaborating with film studios and music companies such as Sony BMG and integrating digital media with traditional book projects.”
Regal Printing
There is much to celebrate at Regal: out of its 12 entries for the IAPHC (International Association of Printing House Craftsmen) International Gallery of Excellence competition, it bagged five golds, two silvers, one bronze and one honorable mention. Its projects have also won two Benny Awards and several certificates of merit. “We also won a silver plus a couple of certificates of merit at the 2008 China Print Award. This is the second time we participated in this event. We are expecting more printing awards by the time this report is published,” says managing director Maurice Kwan, who is understandably pleased to see his team's dedication and passion for printing being recognized.
Regal's continuous investment in newer machines also plays an important role in bringing in the many awards. Despite the gloomy economic outlook, Kwan installed a six-color Heidelberg with inline aqueous varnishing in April. A month later, he added a new Heidelberg ST400 saddle-stitcher, the first of this model installed in Hong Kong and only the second in China. “In light of the trend toward high-quality short runs with fast turnaround time, investing in newer technology with higher efficiency is the way to go forward. The capability to print and varnish at one go, for instance, shortens production time. The quality is much better, too, and we require only one machine to do both processes. The faster make-ready also means less machine downtime. The bottom line is lower production costs for us and more competitive pricing and higher savings for our clients,” adds Kwan, whose five-floor Wong Chuk Hang facility is dominated by three eight-color Heidelberg presses, while its Foshan facility is a near-replica in terms of machinery lineup.
But Regal has moved beyond high-end conventional printing, as shown by a limited edition project that involves wooden box packaging with printing on ceramic. “It was our first attempt at combining the printing and binding of nonpaper materials. The Agfa Anapurna inkjet printer with UV curing makes printing on any material possible. It has broadened the scope of packaging design as we can now incorporate almost any material with printing to produce unique products.” Kwan is also constantly looking into increasing his company's eco-friendliness. “About 90% of the inks we use are soy-based. It costs a bit more than petroleum-based inks, but everybody doing a little bit more will make a great difference. And as an FSC-certified company, we are all for greener and eco-friendlier print manufacturing.”
Starlite
In September 2006, Starlite was appointed by the Standardization Administration of China (SAC/TC170) as the country's first technology development base for packaging printing. “Our role is to spearhead the development of standards for three major postpress processes, namely die-cutting, hot foiling and embossing, and folding and gluing,” explains Richard Lim, executive director and senior v-p for marketing & sales, who invited equipment supplier Bobst and Kurz to co-sponsor the project. These standards have since been established and are being verified and implemented by other printing companies, technical schools and printing colleges. “Standards have continually been set in the West that Chinese printers must follow, usually for prepress and printing processes. So far, there has been no development of postpress standards, and even though China is the manufacturing hub for the publishing and packaging industries, it is often criticized for the lack of manufacturing standards. We hope to rectify this situation.” Right now, Starlite and SAC China are rolling out these postpress standards for international acceptance by the Geneva SAC/TC130 committee for graphic arts and get an ISO number.
As a group, the 10,000-strong Starlite has four manufacturing facilities in China and one in Singapore. Paper products that include children's books and greeting cards account for 45% of its turnover, while the remaining 55% comes from luxury packaging for fashion houses, gourmet food companies and other high-end consumer goods producers. This is a company that was founded with just one letterpress machine 40 years ago by chairman K.Y. Lam. Known in the industry as a strong advocate of green management and eco-friendly processes, Lam made sure that Starlite was the first Chinese printer to be FSC certified in 2007.
Today, this public-listed company is in the midst of expanding its Shaoguan facility to take advantage of Northern Guangdong's lower costs and larger labor force. Meanwhile, its Shenzhen facility will have more automated systems and binding equipment for both limp-bound and hardcover products. A recent series of books sporting a moving mechanism and sound modules on the front cover showcases Starlite's capabilities in combining packaging with printing. “We worked with several electronics companies to develop a wired mechanism that is small enough to fit inside the cover and yet can be cost-effectively manufactured in large quantities,” explains Lim, whose team had every component tested according to safety requirements. “Going forward, we intend to add conventional book manufacturing to our established portfolio of complex handwork products.”
TSE Worldwide Press
A five-pound hardcover book packed in an unconventional case is one of TSE Worldwide's most memorable projects yet. “Our client brought in an egg carton and asked us to incorporate it into the packaging design,” recalls managing director Sarah Tse. “We replicated the look exactly while making sure that the whole package—with the shrink-wrapped 300-page book nestled inside it—is sturdy enough to survive a six-foot drop test.” For another book-plus project, her team replicated the interior of a cabinet and added appropriate support and “stuffing” to make the packaging crush-proof while still keeping the cost of bulk production low. “We also applied special binding to the Smyth-sewn book so that the pages would not come apart with heavy use. And since it is a children's title, every material used in the book and packaging had to be rigorously tested.”
High-end book-plus and other book-related projects represent 95% of TSE's business; the rest comes from calendars and products for nonbook industries. A 100% for-export business, family-owned TSE was established in 1995. Nine years later, this print brokerage set up an office in Rancho Cucamonga, Calif. “We have grown primarily through referral by satisfied clients, and approximately 90% of our projects are repeat business,” adds Tse, who is based in California with six other staff and makes the trip back to her Hong Kong headquarters every other month. “This office handles the front-end workflow and liaises with clients, while our Hong Kong office provides technical and development expertise. Manufacturing is usually done through China-based printing plants which we have strong familial ties with. That means all our projects get VIP treatment.”
For now, addressing client concerns regarding safety issues tops Tse's to-do list. Her team was among the first of the Hong Kong/China suppliers to respond to new U.S. regulations on lead content. “When it comes to children's products, we go the extra mile to make sure every item fully complies with safety regulations. For instance, we may engage two laboratories in two separate regions to test the same product to ensure high accuracy and validity,” says Tse, whose team is focused on developing complex book-plus items and unique packaging while also exploring various procurement programs with suppliers to maximize savings for clients. “Our intensive marketing plan implemented early this year has paid off handsomely, helping us to make a turnaround in second-quarter sales despite the weak U.S. economy. The rest of the year looks very promising to me.”
WKT
The biggest news coming out of WKT is its invention of a new neutral-gray color bar appropriately called WKTone. “This color bar, which we developed independently, greatly helps in assessing proofs and controlling print quality, and credit goes to our production director and G7 professional, Andrew Yan, graphic art design expert Michael Raine and G7 professional Patrick Chung,” says marketing director Jeremy Kuo, whose team is working on a patent. Initial tests and trials at several reproduction bureaus and printing companies have been very positive, and it is expected to be marketed globally soon.
Aside from WKTone, which is now applied throughout its production floor, FM or stochastic screening is also becoming an everyday tool at WKT. “Our production team uses it, at no extra costs to the client, whenever they feel that it is appropriate, and presently that's more than 50% of the time,” says Kuo, pointing out that the prepress workflow up to the point of plate-making remains the same. “But if we decide on FM screening, the platemaker then produces a randomized cloud of 20-micron dots made up of one or two of the four process colors for a particular print area according to the algorithm's interpretation of the color. While the dots are equal in size, the concentration increases or decreases accordingly, and the result is often a stunning print quality.” But Kuo is quick to add: “This process may not suit some projects, which is why we use it selectively.”
Meanwhile, like others operating in this tough economic climate, keeping a lid on costs and making every effort to squeeze out more productivity is standard. “We are fortunate that we had already shifted our machinery lineup to perfector presses and added some binding lines. They greatly increase our capacity per man-hour. But productivity is also helped by a greater emphasis on the software behind the hardware, and much of our focus has been on ensuring that every step we take produces tangible results,” adds Kuo, whose front office remains in Tsuen Wan, New Territories, to handle sales and receive files. Everything else (including one 10-color Heidelberg Speedmaster with a CutStar roll-to-sheet system, four eight-color presses and two Lüscher XPose platemakers) is housed in its Buji, Shenzhen, facility. “Incidentally, we will soon have access to a newly constructed highway just meters away from the facility. That means shorter travel time for both staff and finished goods.”
