Kongsberg Precision Cutting Systems has unveiled 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 for B3 and B2 area where Asian made tables dominate.
Stuart Fox, president, 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 the 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 format digital 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, Esko focusing on packaging software and flexible packaging while Kongsberg’s core business focuses on the display print market. While there is an overlap, it was not big enough to convince Esko to retain the business. “It had reached the point where the strategies were so different,” he says.
Esko has had some interest in instore marketing, FSDUs that go along with FMCG packaging. “Sign and display has nothing really to do with Esko’s core business,” he adds. “But it’s a large part of our 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. “They are very switched on and professional in doing this stuff. They just know what they are doing and are really interested in strong businesses,” Fox says. “They are making it easy for us. Two months in they are really, really happy and supporting us.”
Kongsberg has a corporate office in Belgium, a factory in the Czech Republic and development team in Norway, 400 staff in all. Zoom has been a vital tool in keeping all aware of what is happening.
There have been calls to sales and support teams in the Americas and in Asia who are suited to different time zones, and encouragement to build an inclusive environment. “Everybody can come up with an idea and we will look at it,” says Fox.
Likewise, the negotiations and presale process has involved video presentations and calls rather than face to face meetings over the months leading up to the completion of the deal. Kongsberg will continue to work closely with Esko’s development teams and share 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 are lots of other interesting things that we want to do. For example, there are parts of the world 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 its multi tool head. This is also now decked out in orange as the new corporate colour to set it apart from the equally distinctive Esko green. “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.”
If negotiations with Esko’s board were extended by the inability to travel during lockdown, Kongsberg has turned it into a virtue for the supplier. Its demonstration team have perfected a double act, giving prospects a bespoke tour of the technology and using highly portable cameras to show the customer precisely what they want to see.
It is working well, well enough that remote demonstrations are going to remain a fixture in Kongsberg PCS’ new normal, where the business is able to drive its own future.
