Siegwerk will close its publication gravure site in Lynchburg, VA (USA) later this year.
“Current delivery contracts will of course be fulfilled,” said Hans-Joachim Lauterbach, Vice President of Siegwerk’s business unit Publication Gravure. The Lynchburg facility is dedicated solely to the manufacturing of publication gravure inks for the U.S. market. All other Siegwerk businesses in the NAFTA region will continue.
“Publication gravure has a very solid foundation at Siegwerk,” explained Mr. Lauterbach. “Due to the particular market situation in the USA, we have decided to close the Lynchburg site in order not to endanger that solid basis in other regions.”
Siegwerk NAFTA services a broad spectrum of packaging applications including flexible packaging, labels, tobacco, paper & board, and sheetfed UV.
“Siegwerk NAFTA has been successful in growing organically year over year in our customer segments, especially flexible packaging and labels,” said Dan McDowell, president of the NAFTA Region. “This growth has come from our continued dedication to provide a quality product coupled with outstanding point-of-use service and technical support.”
From 2005 – 2007, Siegwerk NAFTA has nearly doubled in size with annual sales of approximately $200 million . This is due to the acquisition of the SICPA Packaging inks division as well as continued organic growth.
The U.S. publication gravure market however is characterized by a high degree of consolidation on the customer side. Furthermore, Siegwerk’s main U.S. publication gravure customer has decided to set up its own ink production facility, which will take care of all that company’s ink needs. This facility will start production in the summer 2008. Both of the other potential large customers are contractually tied to other suppliers for the next two to three years.
“Some of our other U.S. Siegwerk sites will be taking over production of our scented inks and varnishes and we are looking to expand that successful business,” Mr. Lauterbach pointed out. “We are also looking forward to resuming our publication gravure business in the USA at the earliest possible time.”