Printer Friendly

Challenges ahead for the international ink industry.

For the ink industry, the past year was relatively calm after an active period culminating in drupa 2016. Mergers and acquisitions slowed, as companies integrated recent purchases and formed new divisions. However, there are changes ahead as the supply chain upstream and downstream undergoes more mergers.

The biggest M&A news was Sun Chemical's acquisition of Flint Group's European publication gravure ink business. The sale, which was announced in August 2016 and completed in October, is the only deal in recent memory between the two largest international ink companies.

For Sun Chemical, the move allows the company to add customers and augment its product portfolio. For Flint Group, selling the publication gravure business in Europe allows it to increase focus on its core web offset markets. It also shows the changing nature of the publication gravure ink market in Europe, as Sun Chemical and Siegwerk now dominate the segment.

On the supply side, there have been huge billion-dollar deals. In early January, Evonik competed the acquisition of Air Product's Performance Materials Division for $3.8 billion. Lanxess purchased Chemtura in April 2017. In May 2017, Clariant and Huntsman announced plans for a merger of equals. The largest of all mergers is nearing completion, as The Dow Chemical Company and DuPont are set to complete their own combination in August 2017, forming a company with combined sales of more than $75 billion.

On the customer side, RR Donnelley successfully split into three companies. WestRock divested its Home, Health and Beauty business for about $1 billion to Silgan, while acquiring Multi Packaging Solutions. On the substrate side, International Paper bought Weyerhaeuser's cellulose fibers pulp mills for $2.2 billion.

Consolidation is occurring throughout the supply chain, which makes the coming year that much more of a challenge for the ink industry. For ink manufacturers, navigating these changes profitably will be critical to their success going forward.

David Savastano

Ink World Editor

dsavastano@rodmanmedia.com

The Top International Ink Companies (Ink and Graphic Arts Sales)

DIC/Sun Chemical                 $4.42B
Flint Group                      $2.30B
Toyo Ink                         $1.30B
Sakata INX                       $1.29B
Siegwerk Group                   $1.10B
Huber Group                       $935M
T&K Toka                          $430M
Fujifilm North America           $400M *
Tokyo Printing Ink                $390M
SICPA                            $375M *
ALTANA AG                        $300M *
Dainichiseika Color               $251M
Yip's Chemical Holdings           $205M
Epple Druckfarben                 $185M
Wikoff Color                     $185M *
Royal Dutch Van Son              $130M *
Sanchez SA de CV                  S101M
Marabu GmbH & Co. KG             $100M *
Uflex                             $100M
Xinxiang Wende Xiangchuan        $100M *
Zeller+Gmelin                    $100M *
Daihan Ink                         $85M
Letong Chemical                  $70M *
Bordeaux Digital PrintInk        $60M *
RUCO Druckfarben                 $40M

* Ink World estimate
COPYRIGHT 2017 Rodman Publishing
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2017 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Top International Ink Companies 2017
Author:Savastano, David
Publication:Ink World
Date:Jul 1, 2017
Words:426
Previous Article:Zeller+Gmelin Gmbh & Co. KG celebrates 150 years: family-owned UV ink specialist prepares for 'A Future with Tradition.'.
Next Article:Top international ink companies 2017.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters