Printing firm invests in digital future

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One of New Zealand's largest printing firms, which was bailed out by its bankers this year after big losses, has made a multimillion-dollar investment in new technology in Auckland.

Geon, which employs around 390 staff in this country, had closed its Albany site and sold the equipment, said executive general manager Andrew Durrans.

He said the money from selling the old technology was being reinvested in new, high-speed digital printing equipment at the firm's expanded operation in Kingsland.

Two redundancies had taken place, one of them voluntary. The rest of the staff were transferring to Albany.

Durrans said $2 million was being invested in large and small-format digital technologies that would enable the company to tackle new markets, such as banner printing and outdoor advertising.

"We've been in that market for about a year or so and it's growing at a good rate."

Durrans said the new technology would also open up the small digital printing market, such as direct mail campaigns used by marketing firms.

Geon was moving away from traditional printing areas such as business stationery.

"Things like brochures and letterheads, a lot of them are being replaced or substituted by other forms communication like emails."

In March the Business Herald reported that Geon's bankers - BOS International - had taken control of the company after it accumulated losses of more than A$271 million ($359 million).

At the end of June 2010 Geon had negative equity of A$216 million.

Durrans said BOS International was standing behind the firm "100 per cent" as it forged ahead with its market development.

"As we have delivered year-on-year growth since 2008, we are in a good position to grow profitably."

About a third of Geon's operations are in New Zealand, and the company has more than 1250 staff on both sides of the Tasman.