Langley Holdings has also revealed that there will be no further downsizing of capacity for Manroland sheetfed and that it was “expecting significant capital orders”.
In an exclusive interview with ProPrint‘s UK sister title, PrintWeek, chief executive Tony Langley said improving economic conditions would allow Manroland sheetfed to grow from its current turnover of €350 million ($444 million), even though it was unlikely to return to its €1 billion peak.
“We’ve been in the credit crunch for quite a long time now and the balance of probability is that credit is going to get more relaxed [rather] than tighter,” he said.
“I appreciate most of the [Manroland] kit is bought on credit, but even if credit remains tight for a period, that doesn’t concern us overly, because we are structured for a much, much lower level of activity than the business was doing years ago… We’ve seen the market for new machinery collapse by two-thirds in recent years, but there is a strong service base for the many thousands of machines in the field – I’m speaking generally now – so the aftermarket is strong.”
The UK-based engineering group acquired Manroland sheetfed in February. The deal didn’t include Manroland Australasia, which was taken over as part of Possehl Group’s acquisition of Manroland’s web arm.
Manroland Australasia managing director Steve Dunwell told ProPrint he was thrilled with the deal and proud to be able to represent the Manroland sheetfed customers.
“From Manroland Australasia’s perspective, we’re delighted a serious engineering company has purchased the sheetfed division and is investing in the business for a long-term future,” he said.
“R&D is considered an important part of the business and our customers can be assured that Manroland sheetfed will maintain its quality and innovative reputation.”
Despite his grim assessment of the industry, Langley told PrintWeek it wasn’t “all bad news in the print sector”.
“[Packaging] is a growth area and Manroland is particularly strong in packaging and we’ve got a benchmark product in terms of technology for that sector. So, I don’t see a decline, I actually see quite a potential for growth in that business segment.”
Langley said Manroland sheetfed would be more than just a service organisation and was “expecting significant capital orders”.
“We’ve acquired all of the manufacturing facilities, with all of the operating premises and based on our current projections we will be at about one-third of that capacity,” he said.
“But we have still maintained all of that capacity and there’s going to be no further downsizing of that capacity, we’re keeping it available in terms of real estate and plant machinery and everything else for an anticipated growth from here.”
Langley wouldn’t disclose how much the UK-based engineering group had paid for Manroland sheetfed, but he did reveal it had been on the company’s radar for a few years and had met all eight of its “stringent” investment criteria.
“We look for opportunities in capital equipment manufacture, businesses that are under-performing,” he said.
“[We] don’t look for opportunities to tidy up and move on as quickly as possible. We very much focus on a buy, improve and hold strategy. Put it this way: we’ve never sold anything yet.”
Click here to read the full interview with Tony Langley.
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