Des Moines, IA 50321
Phone: (515) 471-2100
or (800) 728-8200
Fax: (515) 471-2202
Total CUSA Sales: $200 million
Major Products: Solvent-based, water-based, energy curable and specialty liquid inks and coatings and related point-of-use services for the flexible packaging, label, sheetfed, tobacco, liquid food packaging and paper and board industries using flexo, rotogravure and offset printing.
Key Personnel: Dave Hiserodt, president CUSA region; Coen Vinke, VP, Flexible Packaging CUSA; Terry Davis, VP sales, Flexible Packaging CUSA; Lothar Schaeffeler, VP technology Americas; Dean Radford, VP technology Narrow Web CUSA.
Number of Employees: 600 (CUSA).
Operating Facilities: Des Moines, IA – CUSA (Canada and U.S.) headquarters and two manufacturing locations; Morganton, NC – Siegwerk Narrow Web headquarters; Spartanburg, SC; Drums, PA; Vacaville, CA; Chicago, IL; Dallas, TX; Ontario, CA; Brampton, Ontario, Canada; Laval, Quebec, Canada.
Comments: The fifth-largest global ink manufacturer, Siegwerk Druckfarben AG & Co. KGaA is dedicated to the packaging ink market, with sales of $1.3 billion in liquid and digital inks in 2016. Siegwerk CUSA, the company’s US and Canadian subsidiary, had a strong year, recording $200 million in sales in 2017.
Dave Hiserodt, president CUSA region for Siegwerk, noted that 2017 was a challenging year, but Siegwerk has risen to the challenge and the North American region has delivered a positive development.
“We continue to focus our efforts on expanding our core business of inks for package printing through major investments in people, capacity and technology,” he said. “Our business units with the strongest growth potential remain Flexible Packaging and Narrow Web, where we saw well above market growth rates in 2017.”
Siegwerk enjoyed a number of highlights during the past year, including construction in Des Moines, IA, and Morganton, NC.
“In 2017, Siegwerk started the construction of a new 44,000 sq. ft. warehouse next to the corporate office of our Center of Excellence (COE) in Des Moines, IA,” Hiserodt said. “This will expand Siegwerk’s local footprint and further position us for the future - especially in the Flexible Packaging business. The aim of this extension is to grow the solvent-based operations with more robust processes to support increased Flexible Packaging customer demand. The move-in-ready facility is planned to be complete in August 2018. We have also made a number of investments in our UV manufacturing in Morganton, NC, to increase capacity and efficiencies due to double-digit growth in 2017.”
Hiserodt said that he expects to see a lasting volume switch from conventional UV to migration optimized UV inks.
“The demand for UV printing inks is already very high today. That’s why we are continuing to further grow our low migration UV printing ink portfolio for food and pharmaceutical packaging applications,” he reported. “Here, narrow web printers want the highest level of product safety with the minimal migration risk, all coupled with optimal efficiency and short production times.
“We also expect the implementation of low energy curing inks will gain pace while LED UV curing inks will continue to be one of the growth drivers in the UV ink and printing industry,” Hiserodt added. “We will see more investment into LED assets, an area where Siegwerk is well positioned to support the market with leading ink technology.”
After a few years of relative stability, the raw material market is facing all kinds of challenges, with price increases and supply issues driving higher costs. In February 2018, Siegwerk announced price increases for all packaging inks and varnishes in North America, Latin America and Asia. Rising costs of solvents, titanium dioxide, azo pigments, photoinitiators, resins and petrochemical feedstocks have impacted the entire ink industry.
“Siegwerk has experienced continued rising costs in white pigments (TiO2) due to tight supply since 2016,” Hiserodt said. “In addition, stricter environmental regulations in China have significantly raised costs for colored (azo) pigments and photoinitiators beginning in 2017 and early 2018.
“Increasing prices for chemical commodities have also developed rapidly during Q4 2017 driven by higher oil and solvent prices. The outlook for chemical feedstocks into 2018 remains tight at elevated levels,” he added.
Hiserodt noted that Siegwerk is constantly working on getting as many new sources of raw materials qualified as possible.
“We are looking for alternate feedstocks and origins from various parts of the world to ensure our supply chain remains as stable as possible,” Hiserodt concluded. “It is always our objective to minimize the effect of potential supply shortages by having sufficient alternative suppliers and materials for the manufacture of our products and solutions.”
Hiserodt anticipates strong growth in 2018 and beyond.
“Siegwerk CUSA is heading into 2018 with ambitious goals to continue growing its strong position within the packaging market,” he said. “With continued investment in its infrastructure, technology and personnel, Siegwerk has a long-term focus promoting growth for its future and the future of its customer base. Within the US and Canadian packaging markets in general, Siegwerk sees raw material supply continuing to be tight and price pressures continuing upward for at least the first half of 2018. In addition, the Flexible Packaging and Narrow Web printing market and its supplier base will continue to consolidate. The overall themes among printers remain consistent with continuous improvement and innovation leading the charge.”