“We have sold some significant game changer machines within this period such as Heidelberg Speedmaster XL 106 – 8 + LYYL, Heidelberg Speedmaster CX 104 – 5 + L and some major Polar machines amongst others – a full Label System DC – 11, Polar N 115 and 137; and in addition, modern Prepress CTP systems to several clients in our market (region). Our major focus now is on the packaging segment although, the commercial segment is still relevant. However, we have sold less of the machines in this segment given the difficult market conditions lately.”
The above statement from Godwin Ogilo, Managing Director/ Chief Executive Officer of Heidelberg Nigeria Limited (Nigeria subsidiary of world-renowned print solutions provider – Heidelberger Druckmaschinen) seems to be the state of the Printing Industry in within Nigeria in particular and the entire West African subregion between the last drupa 2016 till date.
Though the economic effects of the recent fuel subsidy removal, unstable foreign exchange rate, and epileptic power supply (even with hike in energy costs) amongst others in Nigeria have increased cost of print production thereby discouraging patronage which encourages under capacity utilisation, redundancy and layoffs in printing establishments; the industry is still one of the largest contributors to the Nigerian economy. This is because stakeholders have over the years evolved and adapted to market trends, consumer preferences and demands as seen in the relative growth of the sector. In fact, the printing industry in Nigeria has the biggest cluster formation in West Africa nay Africa that encompasses an entire Local Government (Somolu Local Government in Lagos State – the commercial nerve centre of the nation). However, the story is not the same in some other West African countries.
According to Ogilo, market conditions that generally make doing business within the West African print and allied market challenging include but are not limited to:
- Sourcing for foreign exchange (FOREX) is almost impossible with very high and unstable exchange rate.
- Market uncertainty where future demand is unpredictable thus makes customers unwilling to invest in new machines.
- High interest rates and difficulty in getting financing for clients’ projects.
- Government bureaucracy, changing and inconsistent government policies such as multiple taxation, etc.
- Unpredictable business environment and insufficient attention to infrastructures, such as power, roads, shipping, flight etc.
To Felix Oshai, CEO – Felcal International, suppliers of SCREEN CTP and consumables, fast paced technology advancement is another determinant for players in the industry as most are not able to meet up with latest trends. However, these obvious challenges in the industry seem to be child’s play to some discerning individuals and establishments that are daring the odds to make positive impact in the West African subregion.
Even before the last drupa in 2016, a country like Nigeria is replete with brand new, state-of-the-art printing machines such as Komori Enthrone 429 that embodies high print quality and performance in a compact design – the perfect answer for today’s opportunities. According to Bancod/ Pressfix – Komori authorised representative in Nigeria – Segun Adetayo, one of such is found in Digital Reality Print LTD Lagos Nigeria owned by Africa’s richest woman – Mrs. Folorunsho Alakija who ostensibly given the press performance, bought a newer version in 2014 – a Lithrone GL 540 apparently with coater in order to meet customers’ extreme demands whilst taking care of the environment responsibly.
Shortly after these daring moves by a woman-led press, other discerning Print Investors in Nigeria like Printserve Limited, Lagos who in 2019 defied the odds and installed another brand-new Lithrone GL 540 and lately Marvelous Mike Press in Abuja, Federal Capital Territory who early this year 2024 installed – the very latest Lithrone GL 429 with double coating capability imbedded with Komori’s Super Short Makeready and Smart Colour features that lower makeready wastages.
But what must have influenced these investors’ purchase decisions? Ogilo proffers: “We understand that there are several factors that influence clients’ purchase decision, but the major one influencing our clients and industry specifically in our market (region) is the economy. However, other factors, such as product quality, reliability, price, brand image, unique features, and of course service and quick and reasonably priced spare parts availability also affect our customers purchase decisions.”
The more reason his company sold and installed some significant game-changer machines in Nigeria such as Heidelberg Speedmaster XL 106 – 8 + LYYL, Heidelberg Speedmaster CX 104 – 5 + L, a full Label System DC – 11, Polar N 115 and 137; and in addition, modern Prepress Computer to Plate (CTP) systems to several clients in the region including Government establishments such as Lagos State Government owned Lagos State Printing Corporation.
- Heidelberg Nigeria Managing Director, Mr. Godwin Ogilo with the newly installed, state-of-the-art – Heidelberg Speedmaster CX 104 – 5 + L
Noted as a region imbedded with economic challenges, most Print investors have opted for fairly used/ reconditioned printing presses to upgrade their service quality. These fairly used but perfectly functional presses bought and installed after the last drupa 2016 can be seen all over Nigeria. Amongst others, Adetayo informed that Komori Lithrone models such as L440 2000, L428 2000, and L426 2000 models are running perfectly at Abeysteph Press, View Point LTD, Rashemed Publications, and Extension Publications with alternate Spica 228 2000 Model and Spica 429 2000 model in both View Point and Extension Publications while Crownpack Limited has the following reconditioned Komori presses: L540+C (installed in 2017), L640+C – an Hybrid press (installed in 2019), L540+C H-UV press (installed in 2022) and L240 – a Perfecting press installed this year 2024.
On prepress, quite a large number of Computer To Plate (CTP) brands such as Kodak, Eastcom, SCREEN and other brands were also installed and running across the West African subregion but mostly in Nigeria due to market size and economy. From Kodak Trendsetter, SCREEN 8800 or 4300 for either A1 or A2 sizes and Eastcom DX1160 as well as other brands especially from Asia; these CTP systems are sought after because of their brand name, quality, durability, and price according to Oshai.
Interestingly, the publishing, packaging and labeling/gravure sectors have also seen to a number of installations of new presses. According to Mercongraphic Nig. LTD Country Manager – Anil Rai of Manugraph India LTD – the leading web offset printing machines and CI flexo printing machines manufacturer, the company has supplied and installed more than 29 numbers of Manugraph web offset printing machines such as the following models: HILINE 45000, CITYLINE Express 35000, and ECOLINE 25000 IPH speed machines in reputable newspaper publication and book publishing houses in Nigeria, Ghana, and other West African countries. “Let me state here that in particular, we have recently supplied our new model Manugraph ECOLINE web offset printing machine with spray dampening system and in-line variable data, numbering and micro perforation system to our reputed customers in Nigeria in such places as the Federal Capital Territory (FCT) Abuja and Ibadan, the Oyo State capital. These include: Rasmed Publication in Ibadan, Extension Publication, also in Ibadan, Perfect Printers in FCT Abuja, and Yaliam Press also in FCT Abuja. Then in Ghana, we also have a fully loaded CITYLINE Express machine at Jay Kay Industries & Investment PVT LTD in Accra Ghana” he recalls aside the newly installed web and packaging presses amongst others at Digital Reality Print LTD in Lagos, Nigeria and Appointed Time Printing Press in Accra Ghana respectively.
In 2020, Bhojraj Industries LTD also led the way in quality gravure printing in Nigeria with huge investment in BOBST technology. The Lagos-based supplier of flexible packaging to the food industry added a BOBST NOVA RS 5003 to its machine lineup by extending its capacity for high-quality printed packaging.
- From left to right: Messrs. Mustafa Khokhawala, Vice President Operations, and Managing Director Nikos Gkanetsos, in front of the MASTER RS 6003 gravure printing press in the production plant of Bhojraj Industries LTD in Nigeria
Picture © BOBST
Then in 2022, one of Africa’s Fastest Growing Companies 2022 – Tripple Gee and Company Plc acquired and installed NilPeter 11-Colour Flexo printing press in a bid to consolidate on its areas of strength, expand into new markets and continue to satisfy customers yet deliver maximum return on investment to shareholders.
And last but not least, Flexipack LTD based in Agbara, Nigeria also invested in BOBST EXPERT K5 for Production of Metallized BOPP. The EXPERT K5 2900mm machine commenced production at the beginning of 2023, producing metallized BOPP films used in sustainable flexible packaging throughout the growing sub-Saharan African market.
- BOBST EXPERT K5 at Flexipack LTD production floor
Picture © BOBST
Without doubt, the West African print market has undergone tremendous changes in line with industry trends within the last decade. Even with obvious geo-economic challenges, players in the region have seen to more capacity development in a bid to tap into the huge investment potentials of the region. But what should we expect from these Print Investors after drupa 2024?
After an eight-year hiatus, the world’s leading trade fair on print technologies for inspiration, innovation, top-class knowledge transfer and intensive networking – drupa will finally hold from 28 May to 7 June at the prestigious Düsseldorf Exhibition Centre, Düsseldorf Germany. According to Sabine Geldermann – Director drupa, Portfolio Print Technologies, Messe Düsseldorf GmbH – drupa 2024 is expected to not only offer all participants the best platform to experience the latest innovations and groundbreaking technologies from the print media industry, industrial and functional printing to packaging production at first hand; the world’s no. 1 event for print and crossmedia solutions will also help players discover how the industry is responding globally to the challenges posed by sustainability issues and advancing digitalisation. With the insights gained, they will thus secure valuable knowledge advantage for their business successes.
Specifically, she noted that the key issues to expect from drupa exhibitors this year will be: “Quite clearly, digitalisation and sustainability. Digitalisation is an enabler for processes and applications in the print and packaging industries. AI, platform economy, and the openness to new product solutions in the field of industrial applications play a key role. Furthermore, sustainability will characterise drupa’s agenda. With such topics as Circular Economy, Energy Efficiency and Resource Conservation it has become a pivotal factor for the industry as a whole. In this dynamic context, the exhibitors pitch their new products and innovations to an international audience comprising the print and packaging industries, agencies, trade, media and research.
“Overall, the industry is growing. We expect labels and packaging to take a growing market share at the expense of publishing, commercial print and graphics applications. Recent market research forecasts a CAGR (compound annual growth rate) of more than 5% for these areas, which is roughly in line with the development of the last 5 years. Asia and Africa are expected to be the markets with the highest growth, averaging over 6% per year by 2028. After meeting with so many print industry professionals on our drupa World Tour, we are very optimistic about the future. The findings from the 9th drupa Global Trends Report also confirm this positive outlook. COVID brought with it a drop-in investment but according to the report, that decline is now in reverse and both Printers and Suppliers plan to increase investment in 2024. And if the excitement in the run-up to drupa is any indication, we are looking forward to a successful year from the industry” Sabine assures.
With many print & allied investors from sub-Saharan Africa attending, the multiplier effects of drupa 2024 will certainly be revolution-like within the West African printing community. So, watch out for more innovative but sustainable investment in the industry!
This SPECIAL FEATURE ARTICLE written by Joju ADEKANBI – Publisher/ CEO – WHERE To Print magazine (Ghana & Nigeria) is for drupadaily GLOBAL PERSPECTIVE Series.