Kongsberg Precision Cutting Systems has revealed its smallest cutting table to date, but the C20 still has a 1.6×1.4m bed. And there is little chance of the newly independent company moving into the small format digital space where Asian made tables dominate.
President Stuart Fox says that the C20 is aimed at space constrained sign and display printers, particularly in locations where floorspace can be expensive. “The high cost of owning or renting space is a serious problem for many in the sign and display market. With new Kongsberg C20 there is no longer any need for those businesses to compromise on production and quality due to a lack of available space.”
The step into smaller formats is not appealing. “The trick is not to get distracted from what we do well,” he says. “It’s not off the table completely, but I’m not sure what we can bring to it.” These are the sentiments that led to the spin out of the cutting table business from Esko.
The strategic direction of the two businesses was becoming increasingly divergent, says Fox, with Esko focusing on packaging software and flexible packaging while Kongsberg’s core business is focused on the display print market. While there is an overlap, it was not big enough to convince Esko to retain the business.
Now, says Fox, Kongsberg is able to set its own direction rather than having to fight for its share of the group budget. It has been bought by OpenGate Capital, described by Fox as a specialist in “corporate carve outs”. As an investment group it understands how to run businesses and their needs. Kongsberg has a corporate office in Belgium, factory in the Czech Republic and development team in Norway, 400 staff in all.
The negotiations and presale process involved video presentations and calls rather than face to face meetings over the months leading to the completion of the deal. Kongsberg will continue to work closely with Esko’s development teams and sharing stand space at some exhibitions. But Esko will no longer set the direction for the business.
“We are like a mature start up,” says Fox. “There a lot of interesting things that we want to do. For example there are parts of the work where the market for display and signage in retail is not as developed as it is in Europe and the US.”
Many of these businesses are on the look out for technology to fit in smaller premises, where the new C20 will have a strong appeal.
This is a high speed production table with the same technology as the larger models in the C Series for cutting accuracy and multi tool head. “The Kongsberg C20 is an investment that will help drive the owner’s creativity and production to new levels,” says Fox. “Achieving optimum performance from a significantly smaller footprint is a real game changer for the sign and display market.”
