From next year Royal Joh. Enschedé will be focusing as a High Security Printer on the international market for Stamps, Visas and Tax Labels, together with interesting growth markets such as ‘brand protection’ and ‘anti-counterfeit’. This new focus means that the company will cease the production of Banknotes in the near future.
The Board and Shareholders have decided on this modification of the strategy as a result of market developments and the company’s position in the various markets. The new focus means that the banknotes division will be closed, which unfortunately will lead to a considerable loss of jobs. The Board of Royal Joh. Enschedé informed the staff of this at a special meeting today, Thursday 1 December 2016.
The international market for banknotes has been characterised by overcapacity for years, whereby many parties are competing for tenders with rock-bottom prices. State printing offices from various countries are increasingly also competing, winning export orders at unrealistically low prices alongside their protected position in their home market. This is creating even greater pressure on prices and an imbalance in the competitive landscape. Even with highly efficient business processes and much enhanced productivity, Royal Joh. Enschedé cannot operate at such even lower price levels. It would mean that the company would have to start consistently executing loss-making orders, which is not commercially prudent.
Over the recent period Royal Joh. Enschedé has looked for a collaboration with or acquisition by a strategic partner in order to gain a more secure position in the market and reduce the risks. This has not been successful.
In order to safeguard the future of the other activities, the company’s Board and Shareholders have decided to terminate the sale and production of banknotes. This means that the current order book will be fully completed, after which the closure of the banknotes division will take place at the start of next year. Unfortunately this will involve job losses.
With a modified, smaller organisation and the new market focus, the Board and Shareholders of Royal Joh. Enschedé believe that the company’s future survival can be secured and a basis for healthy growth can be established as a leading High Security Printer.