Last week we had the fuss about the Wall Street Journal and their misunderstanding of the messages they were given in a briefing by Kodak Chairman and CEO Antonio Perez. In that the WSJ incorrectly reported that Kodak planned to divest itself of its Nexpress and Digimaster digital printing operations, whereas Perez actually stated that Kodak planned to develop the operations of this division through partnerships and alliances.
What a difference a week makes. Today in Sweden Kodak and Ricoh announced an alliance that allows Ricoh to sell the Kodak Nexpress and Digimaster product ranges throughout most of the European markets. Ricoh has a strong distribution channel in these markets and currently it sells a wide range of Ricoh light monochrome and color production presses under its various brands. These channels include those Danka/Infotec, Gestetner and Infoprint Solutions, the joint venture with IBM. The Kodak products will be sold alongside the Ricoh Aficio range as well as the recently introduced Ricoh Pro C900 color press.
At this time neither Kodak nor Ricoh is saying any more but I get the feeling that there is a lot more to this agreement that will come out over time. At the moment this agreement just covers Europe, but no doubt this is just a start. I also have to ask where does this put Kodak's agreement with Canon. I hear that the Nexpress M700, that uses Canon 7000 technology, is sitting somewhat exposed in the market at a high price compared with equivalent products, and that it is being well undercut by Canon's pushing of its 6000 press. Can we expect that Kodak's weaknesses against companies like Xerox, where they have no comparable products to the Docucolor 242/252/260 and 700 Digital Press, could be helped by moving the Ricoh Aficio range through Kodak's channels?
I think it is a shame that this information could not have been made available when Antonio Perez addressed the financial community. Perhaps he would have got a more positive reaction and perhaps also he would have had an increase in the Kodak share price. I am sure that this is not Kodak's only announcement to be made in the next few months so I think we shall have to watch the company closely for some time yet.
Discussion
By Henk Gianotten on Feb 13, 2009
@andrew,
What about the sales of Kodak Nexpress bij Océ in the Netherlands? Do you expect that Océ could extend their portfolio to other regions/
By Jack on Feb 13, 2009
This is only new in Europe. In the US, Ricoh has been selling the NexPress for about a year.
By Michael Josefowicz on Feb 13, 2009
@anyone,
I'm seeing Ricoh continuing to make a big move. First with IBM in infoprint for transpromo and enterprise IT, now with Kodak to supply the consumer piece to feed into Kodak's production machinery.
From what I think I/m seeing the real problem is for Xerox who has gone it alone with boxes for all market segments and Oce, who as far as I know doesn't have a consumer piece.
Meanwhile, HP is going into MPS and is still digesting Extreme. With their recent successful sales of Indigo and their domination of the consumer market. It looks to me that Ricoh+IBM + Kodak v HP is the way this is going to go.
Is anyone else seeing the same thing?
By Henk Gianotten on Feb 13, 2009
The Dutch and German Océ Nexpress deal are documented in the following text:
"Kodak’s Graphic Communications Group (GCG) and Océ-Nederland BV Sign Nexpress Partnership Agreement in the Netherlands.
Kodak’s Graphic Communications Group (GCG) has a partnership agreement with Océ-Nederland BV, whereby Océ will sell the Nexpress Digital Production Color Presses directly in the Netherlands. A similar relationship already exists for the German market. Océ will now be licensed to sell directly the Kodak Nexpress Digital Production Color Presses to its customer base. These high end presses including the Kodak Nexpress S3600, S3000, S2500 and S2100 Digital Production Color presses, offer up to 5 color digital printing capability at speeds ranging from 2,100 to 3,600 A3 5/0 sheets per hour, or 70 to 120 A4/letter pages per minute.
“We are delighted to be partnering with Océ-Nederland BV to sell the high end Nexpress presses in the Netherlands,” comments Philippe Berte, Managing Director Kodak’s GCG, Benelux & Nordics. “We believe that there is a huge market out there for digital production color presses and working together we can offer a wide range of end users the ideal solution for their businesses.”
“The Kodak Nexpress Presses are among the best digital production color presses on the market,” comments Jan Verschaeren Managing Director of Océ-Nederland BV. “We endeavour at all times to offer our customers a broad selection for their printing needs and so by adding them to our product portfolio we are completing the range of presses that we provide. We are very much looking forward to working closely with Kodak and firmly believe that this partnership will provide huge added value for our customer base here in the Netherlands,”
As you can see, they apparently have the same deal in Germany.
By JIm on Feb 13, 2009
Ricoh really is creating a presence in the production printing segment and the deal with Kodak is just another example of it.
By Art Post on Feb 14, 2009
When I saw the press release it did not surprise me. The growth in the marketplace is at the very highend and the very low end of the market.
It would not surprise me if Kodak sold off the division to Ricoh in the near future. Ricoh is selling the nexpress in the US, and now EU, it's only a matter of time.
Rumor on the street is that KonicaMinolta will buy OCE sometime this year and it makes good sense for them. A, they get into the AEC market whereas now they only have an OEM with KIP. B, they get the Print Production from OCE on the highend. We'll see...
Art Post
Do a google search for Docusultant
By nick on Feb 15, 2009
You are correct. Ricoh has been selling but not serviceing the Nexpress for a year now. Kodak Field Engineers have been doing the service. With the recent announcement of layoffs at Kodak of up to 4500 employees it worries FE's myself included. Who will service the product in the future. Will it be the layoff/rehire at lower wages game so many companies do now a days? As the title stated "what a difference a week makes." Lets hope or at least I hope the news is good over the next several weeks.
By Michael Josefowicz on Feb 15, 2009
@Art,
What's the AEC market?
By Adam Dewitz on Feb 15, 2009
AEC is Architecture, Engineering, Construction
By Bob Riendeau on Feb 15, 2009
Having worked at IKON, Ricoh PPBG, and now at Kodak, it does not make sense to me why Kodak would sell off its Nexpress Business. The above mentioned growth in high end print is very accurate. That growth is in color, but it’s in continuous inkjet color. I see Kodak restructuring for the real market growth by reducing its sale force and selling through a number of channels to maximize its placements of Nexpresses while it prepares and moves with Kodak momentum towards the very near future of color. High speed high quality low operating cost inkjet technology. Watch the Kodak Stream jet product…it’s the future and Kodak is there!
By fred on Feb 16, 2009
Kodak GCG sold Nexpress by channel in china from 2008. HP indigo by channel too. Xerox/KM sold by themself. in High end market, HP indigo is winner, Kodak is weak.
By Ralf Schlozer on Feb 16, 2009
I was always a bit puzzled that Kodak put so little marketing focus on their toner systems. At drupa the press conference was all about Stream, which is not shipping anytime soon. At drupa Kodak announced a higher speed NexPress, dimensional toner, MICR for NexPress and a modular Digimaster, which would make it the fastest cut-sheet bw printer. These are good - and in some areas unique - products.
It makes sense to look for more channels to increase market access. However there is no available channel, which could take over the sales of high-end products completely.
By Michael Josefowicz on Feb 16, 2009
Bob,
Any thoughts about how Kodak plans to deal with the fact that Screen already has it's high speed color inkjet machinery on the ground in an Alphagraphics in Northern New Jersey.
I don't know the difference between Stream and the Screen Trujet, but I have to wonder whether they will be able to defend against Screen's first mover advantage.
By Bob Riendeau on Feb 16, 2009
Michael,
Kodak is moving with Kodak momentum with its Stream technology already installed in Ohio at a very large customer. The Stream color breaks the mold as continuous color is typically similar in quality to a business color copier. From what we are seeing off the Stream it’s comparable in many ways to the outstanding color you see of our Nexpress product line. As for Screen Trujet, I am not sure of how its quality will compare to Kodak’s Stream. Read below on our install in Ohio.
ROCHESTER, N.Y., Jan. 27—Cyril-Scott Company, a Consolidated Graphics company located in Lancaster, OH, is set to become the first installation of Stream Printheads, Kodak’s new, much anticipated continuous inkjet solution for inline printing on an offset press. First demonstrated at drupa 2008, the Stream Printhead using KODAK Stream Inkjet Technology is a hybrid solution that provides a true bridge between offset and digital printing, extending the business and revenue opportunities of printers of all sizes and adding value to printed pages.
“KODAK Stream Inkjet Technology enables offset class reliability, productivity, cost of ownership, and quality with the full benefits of digital printing for commercial and transactional applications,” said Ronen Cohen, Vice President of Marketing, Inkjet Printing Solutions, Kodak’s Graphic Communications Group. “The changing nature of print and communications means that service providers must adapt to meet the needs of their customers, offering a variety of solutions that are best suited to address the individual needs of each project. The Stream Printhead is an ideal bridge between digital and offset.”
Cyril-Scott was founded in 1959 as one of the first inline finishing web printers and has built its business around innovating cost saving methods of print production for its customers. The company offers everything from design and prepress to printing and finishing, and as the first beta customer for the Stream Printhead, will bring its personalization services to the next level.
Cyril-Scott is installing four Stream Printheads mounted to a KODAK VERSAMARK DC3800 Printhead Carriage that is integrated inline with a web offset press, along with a KODAK VERSAMARK CS410 System Controller. The Stream Printheads will be used to print a U.S. Postal Service self-mailer, in addition to other direct mail applications.
“The Stream Printhead brings an exciting new capability to our full range of services,” noted Matt Coltharp, President of Cyril-Scott. “Personalized direct mail provides the best return on investment, and the ability to customize any mail piece at offset speed and quality will help us provide our clients with a real competitive advantage.”
The Stream Printhead, with flexible mounting options, integrates seamlessly with web offset presses and a variety of third party printing towers to add variable data to offset printed materials at 1,000 fpm (305 mpm) with a resolution of 600 dpi. With a print width of 4.16 inches and rich black pigment based inks that offer fade, scratch, and water resistance, the Stream Printhead increases throughput and eliminates the need for additional standalone equipment.
“The Stream Printhead is ideal for applications such as direct mail personalization, coupons, commercial gaming, and inserts,” added Cohen. “And because printers can now personalize a job in-house, they retain control of the quality and keep the profits for themselves. Cyril-Scott is a leader in the direct mail market, and I’m confident that the feedback we get from them will be invaluable in the commercialization of this product.”
Cyril-Scott has been a Kodak customer for more than 10 years. They currently operate 19 heat-set web presses that offer a wide variety of sizes and capabilities. The company has a strong presence in the bind-in market, while its innovative spirit has enabled it to develop and expand its capabilities and product line.
KODAK Products are backed by KODAK Service and Support. KODAK Service and Support is made up of more than 3,000 professionals reaching more than 120 countries. It is a leading multi vendor integrated services provider, delivering consulting, installation, maintenance and support services for the commercial printing, graphic communications, document imaging and data storage industries. KODAK Service and Support professionals are uniquely qualified to provide services that control costs, maximize productivity, and minimize business risk.
By George Alexander on Feb 16, 2009
Bob,
I am glad to hear that the Stream technology is moving into field testing. I’m eager to see what Stream can really do. The Cyril-Scott press release, however, leaves me confused about what the application is like. It leaves two basic questions unanswered, and I hope you can answer them here.
1. Cyril-Scott is getting four Stream printheads. Does that mean one each of C, M, Y, and K? Will this be a color installation?
2. The second question is somewhat related. The Stream printhead is 4.16 inches wide. Does having four of them mean that Cyril-Scott will be able to print in four parallel 4.16-inch black-and-white swaths down the web? Or a single 4.16-inch swath of CMYK? How wide is the press the heads will be used with?
Thanks for shedding light on this.
By Michael Josefowicz on Feb 17, 2009
Bob,
Thank you for posting. IMHO, this is a pretty big deal that has escaped notice.
FYI:
http://toughloveforxerox.blogspot.com/2009/02/this-is-pretty-big-deal-for-kodak.html
Discussion
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