XAAR’S INKJET HEAD TECHNOLOGY is at the heart of four direct to bottle demonstrations at Drintec in Munich this month, in a development which might ultimately pose questions about label printing.
However, Xaar chief executive Ian Dinwoodie explains that these are a long way from commercial operation. “We expect four of our partners to demonstrate direct to shape printing at the show,” he says. One, says its Innoprint product will print 36,000 PET bottles an hour. Nor does Dinwoodie believe this to be a threat to digital label printing where Xaar has a significant stake in the game through partnerships with Stork, Durst, EFI and FFEI, all of whom with have a significant presence at Labelexepo later this month.
“WE THINK WE WILL STIMULATE demand and bring more focus on the sector. Direct to shape is a few years away still,” he adds. Inkjet took its first faltering steps at Labelexpo four years ago and is now mainstream. “That is starting to pick up,” Dinwoodie admits. While there is development underway in other sectors of packaging, a number of companies are attacking the corrugated sector of example, much of this is currently in the background and is too soon for Xaar to benefit.
It has however scored significantly with ceramic printing where its piezo head is proving ideal for jetting the fluids used. As a consequence industrial sales have been worth 71% of total sales at the interim stage, showing a 116% year on year increase and reaching £47.9 million. The sector is rapidly becoming digital while printed laminates are showing some growth, if not the anticipated rates.
OVERALL REVENUE INCREASED TO £67.2 million and the promise of further growth has pushed its share price to 870p. A big lift in dividend has also helped. Pretax profit rose to £22.3 million (£6.7 million). There is no more talk of takeover by an American corporation.
The labels and packaging area is currently 12% of sales at £8.3 million and with a 36% year on year growth rate. The graphic arts sector, which includes wide format, is at 11% of sales at £7.7 million and up 28%, mostly because of comparison with a weak equivalent period. Higher resolution heads are close to launch, but it is the development of a Mems head that holds the key for long term success in the sector.
DEVELOPMENT OF A SUCCESSFUL NEW HEAD, currently dubbed P4, produced using Mems techniques would bring prices down significantly and increase volumes. This is still at the concept testing and prototype stage Dinwoodie explains and no decision has been made on whether Xaar should invest in its own Mems facilities or whether it should sub contract production. “It’s an open discussion at the moment,” he says.
“We have a lot of cash flow which allows us to keep our options open.” The P4 head would open different industrial applications as well as allowing a Xaar head to be used in more mainstream commercial print applications, books, direct mail and so on, as well as textiles, that it is not suited for at present. First release of this head is not expected until 2015.
Ian Dinwoodie says Xaar is considering options for Mems production.
