Displaying items by tag: CPI

CPI expresses concern over legislative initiatives that it says jeopardize the United Kingdom's paper industry.

The U.K.-based Confederation of Paper Industries has released a statement expressing concern over government policies and initiatives that it says may have a negative impact on the paper industry in the U.K.

In the statement, David Workman, CPI director general, calls for significant changes to the paper industry in the country. In defense of the industry, Workman points out that the U.K. paper industry includes 50 paper and paperboard mills and accounts for around 25,000 jobs in the country.

Highlighting the environment efforts of the U.K. paper industry, Workman says that since 1990 the industry has reduced its energy consumption and carbon emissions by more than 30 percent and has invested more than £10 billion (US$16.2 billion) in equipment and combined heat and power and on-site biomass plants. Meanwhile the paper recycling rate in the U.K. stands at 73 percent.

The CPI adds that despite these successes, government policy is acting as a disincentive to further investment and could result in the closure of many mills over the next decade. Potentially the most damaging of the policies, CPI points out, is the Carbon Price Floor, which comes into effect in 2013. At £16 per metric ton, it could cost the paper industry more than twice the amount paid by EU competitors. Further, the rate is due to increase by £2 per metric ton every year, until 2020. CPI calls for the U.K. government to abandon plans to implement the tax.

The CPI also finds fault with the new climate change agreements (CCAs) coming into force next year. According to CPI, the U.K.’s Department of Energy and Climate Change (DECC) has set an arbitrary target calling for the U.K. paper industry to reduce energy use an additional 14 percent.

CPI has announced the appointment of Debbie Stringer as its Energy & Environment Manager. A graduate in Paper Technology, she joins CPI with over 20 years experience working in paper mills, having been employed with Abitibi Bowater at its Bridgewater Mill in technical and environmental roles.

Steve Freeman, CPI Head of Energy & Environmental Affairs, said: "Debbie strengthens our expertise in mill-related energy and environmental issues as increasingly complex and important regulatory issues continue to develop. In particular, the new BREF and subsequent permit reviews will be of critical importance for mills, and Debbie will have a key role to play in ensuring proposals are realistic and workable."

Further information: Debbie Stringer This email address is being protected from spambots. You need JavaScript enabled to view it..

CPI's net profit dropped 4.2 per cent to $2.04m for the first half of 2009-10 while earnings before interest and tax (EBIT) fell 27.6 per cent to $4.2m. The Australian paper giant says trading conditions remain difficult with volumes still below the levels two years ago.

In a telling insight into the current state of the domestic printing industry the company also reports its revenues from ordinary activities are down 24.6 per cent to $209m, from the $277m it recorded in the latter half of 2008.

CPI told shareholders today that in view of the still difficult conditions in the industry it has determined not to declare a dividend for the time being. CPI's share price plummeted 22 per cent following the release of its figures.

Bernard Cassell, managing director of CPI says, "During the six months to December 31, conditions remained difficult due to the depressed levels of activity in the economy generally, and the printing industry particularly. Volumes were significantly affected with anecdote evidence suggesting the industry volumes were down by 20 per cent."

Cassell also says that in line with the difficult conditions the Group has focused strongly on cost and balance sheet control. He says, "Cost control initiatives which had begun in the previous financial year, were continued and consolidated. Overheads for the first six months were 17 per cent below the prior year, exceeding the targets that had been set."

Commenting on the decision to sell its Graphics Division, with Komori presses, to Ferrostaal Cassell says, "The opportunity was taken to further rationalise product ranges and clear out discontinued lines. This process is now well advanced."

Ferrostaal has bought the conventional printing machinery business of CPI Group in Australia and New Zealand, including the distribution of flagship brands, Komori (offset printing presses), Wohlenberg (guillotines and perfect binders), Baumann (postpress handling equipment) and Osako (saddle stitchers). Brian Moore reports.

The deal was announced in a letter to the Australian Stock Exchange this morning from CPI Group managing director, Bernard Cassell, who said, "The sale is part of CPI's strategic plan to concentrate more on its core business. We are delighted to be able to enter the arrangements with Ferrostaal who are a proven supplier to this market."

Financial arrangements of the transaction have not been disclosed.

Ferrostaal is taking over related spare parts inventory, selected sales and service staff including Gerard Wintle, and assume responsibility for all service and outstanding warranty obligations of the brands involved.

CPI will continue to sell digital finishing and wide format equipment and related consumables.

In an interview with Australian Printer, Ferrostaal CEO, Markus Haefeli said that he was delighted with the transaction. "Since parting the ways with manroland last year, Ferrostaal has been looking carefully for a top of the range brand and in Komori, we now have it," he explained.

"Komori, together with the other market-leading brands acquired through the CPI purchase will further strengthen Ferrostaal's position as the graphic arts economy continues to recover in Australia and New Zealand."

The CPI deal has brought to a climax an aggressive search by Haefeli for top flight brands to compliment the Ferrostaal range.

"Ferrostaal is strongly committed globally to the printing industry and over the last 12 months has demonstrated this with substantial investment in people, infrastructure and brands that make it a major player both in conventional and digital print."

Those relationships include a tie-up with Canon in digital print and a soon-to-be announced representation deal with a major prepress manufacturer including both heavy metal and consumables to replace Ferrostaal's distribution arrangement with Kodak which was terminated earlier this year.

Haefeli expects the deal with CPI to be concluded in the next week and that the transfer of people, brands and inventory will be completed immediately thereafter.

Despite the financial upheavel of 2008-9, Ferrostaal during this time went through a change of majority ownership from the German MAN group to the IPIC (International Petroleum Investment Company, Abu Dhabi) with the resulting infusion of substantial funds for its continued growth and expansion. Though involved in other high capital investment areas such as oil and infrastructure, Ferrostaal is very seriously committed to print, as its investment in Australia and overseas continues to show, says Haefeli.

"There is minimal overlap of brands - the Ferrostaal and CPI range have proven very complimentary - and we are looking forward to growing our business with our existing customer base as well as exploring the possibilities of a whole new group of customers in the graphic arts industry."