Executive Q&A

Kilian Renschler has been named the new CEO and president of Koenig & Bauer US/CA at the start of 2021. Previously, he was executive vice president of sales of Koenig & Bauer US/CA. 

WhatTheyThink: Having a discussion in early 2021, there is no way not to touch upon the developments in 2020, the COVID pandemic and the impact it had on everybody. How would you describe the impact it had on Koenig & Bauer, and how much of the impact do you still feel?

Kilian Renschler: A big difference we saw was the use of virtual tools. The importance of virtual service and support tools was key in this time. It also brought up the importance of the digitization of Koenig & Bauer, that we already have tools in place for preventive maintenance, to monitor press performance and consult customers based on that. 

Communication was very important, how to train service technicians in a pandemic when travel is not possible. Here the factory came up with innovative ways to train technicians and continue to serve the market.

What we clearly saw is that the packaging market remained very active. The changed consumer behaviors to buy more packaged food in grocery stores resulted in a high demand of food packaging. Also, on the pharmaceutical side we saw that customers were busy and we needed to guarantee uptime. We have a strong service team that proved to be very flexible and adopted the new tools quickly to keep our customers busy. 

We were also happy to grow our market share. One of the reasons was that we have a very strong portfolio for packaging customers, not only our Rapida presses, but die cutters and folder-gluers. We are seen as experts in this market and when times get difficult customers go to the company where they feel they get the best service and the best consulting. We saw customers investing in devices with higher productivity, customers investing especially in large logistics systems around their equipment, since logistics is a big cost driver in folding carton. Customers, when upgrading presses, they were also looking into ways to increase the overall efficiency on the shop floor.

We have seen more sales of sophisticated machines, long presses, more embellishment, double or triple coaters to offer new products and innovations for the market 

WTT: I assume commercial press sales were down considerably during the pandemic. Has that market recovered?

KR: We have customers in the commercial market who are very successful, they have succeeded even in difficult times depending on the market they serve. Overall, it is fair to say that commercial printers have not grown in comparison to the packaging market. However,  we do see the commercial market rebounding once we get past COVID.

WTT: Last year you had the Koenig & Bauer Print Live event where you launched new machines. Maybe you can give a quick intro to these and whether they are available already?

KR: Last year we had a virtual event, which was well accepted by the market. A big innovation we introduced was the CutPRO X – our new rotary die-cutter. It is available and is being installed right now in the U.S. We also introduced a new generation of flatbed die cutter at the event, the CutPRO Q.  It will become available in the U.S. later in the year – in Europe we are now installing the first machines. 

A big innovation for us was the new Rapida 106 generation, especially the Rapido 106X. Koenig & Bauer has done a fantastic job of enhancing this platform to achieve a new standard. We showed the 20,000 sheets/hour in perfecting mode on the Rapida 106 X. 

The new generation consists of Rapida 105, the 106 and the 106X. We tailor the presses to each customer’s exact need. This is a ground-up new generation of press technology with faster throughput, a focus on short runs, less maintenance, simpler operation and more integration with pre and postpress. 

As we speak, we have the new generation being installed in the U.S.

WTT: One thing I found remarkable is the Qualitronic Color Control. You can measure every sheet on the device and detect faults.

KR: We measure every sheet and adjust based on every 10^th sheet. Our system measures after the coating unit, which is a bit different from others. We have systems that can measure from basic density to spectral analysis to grey balance. 

We can use the same hardware to offer sheet inspection control. We can offer different levels of inspection quality control, from basic to highly sophisticated, depending on the application. 

Between color control, inspection and registration this is a leading technology. The aim is to have the system autonomous and self-managing.

WTT: On large format offset – Heidelberger left the market citing not being profitable there. How did the market develop for Koenig & Bauer?

KR: We have invested into our large format Rapida machines and the market has been very strong for us. The pandemic showed that the demand for food-driven applications grew substantially, and in North America this is mainly produced on large format presses. We also see growth in the litho laminate or top sheet printing segment with our large format presses. Overall, our success is quite diverse and comes from small, independent companies to large integrators. 

We clearly believe large format will be a long-term integral part of Koenig & Bauer’s and our customers' future. 

WTT: The focus is more towards packaging than book print or commercial?

KR: I believe that large format is of interest to all market segments including book and commercial. We also have online printers running ultra-short runs on large format presses in Europe. 

Koenig & Bauer sees the importance of having presses and technology for commercial, book and web-to-print printers and has developed new products for their exact needs. This includes special features for them as their workflow is different. At Koenig & Bauer every machine is custom built to their individual needs. 

WTT: A market where Koenig & Bauer used to be very strong is webfed offset. This is probably different now. Where does that market stand for Koenig & Bauer?

KR: With the demand for newspapers declining the market size has reduced. However, we are happy to be installing one newspaper press in Florida right now, but this is definitely not a growth market. We also have ongoing retrofit and upgrade projects for both newspaper and commercial applications. 

WTT: A growth market is certainly digital printing. There has been a number of installations in Europe, how about installations in the U.S.?

KR: We have digital print on various platforms. We have had the RotaJET for quite a while and we currently have one installation going on in the U.S. 

We are very excited about the VariJET 106 sheetfed press for the folding carton market. We have machines in our factory in Radebeul and we are looking at a North American market introduction later this year. It is a unique machine as it offers a very interesting TCO concept. It is a combination of digital and conventional print units that can be combined for the best of both worlds. 

We also see a good market in the corrugated with the direct print products from the Koenig & Bauer Durst joint venture. Each business unit within Koenig & Bauer has a competence team to develop digital solutions. There is a cross-platform team that ensures there is uniformity between the concepts. We see digital as a very important part and being complimentary to our current products. 

WTT: The presses from the Koenig & Bauer Durst joint venture are sold by both companies in the U.S.?

KR: Yes, there is a collaborative effort by Koenig & Bauer U.S. and Durst U.S. We work together to sell products such as the CorruJET 170 and the SPC 130 depending on the customer’s needs. 

Since we have both conventional and digital technologies, we are in a unique position to consult our customers based on their requirements and offer the best solution. 

WTT: In 2019 there was a press release of Tetrapack and Koenig & Bauer cooperating on a digital packaging press based on the RotaJET. Can you give an update?

KR: The machine is in progress of being implemented. We are working with them, but due to confidentiality I can’t go beyond what is stated in the press release. One RotaJET 168 has been sold and we see this just as the beginning of this technology entering the marketplace.  

WTT: Koenig & Bauer invested a lot into finishing recently. Have you started to roll out the devices in North America?

KR: The folder gluers from Duran are well established in the U.S. and Canada and under the roof of Koenig & Bauer we are selling them successfully. They are a proven platform, highly reliable and solid technology built in Europe. With our Iberica die cutters we have many successful installations in the U.S. and Canada. It is all part of our success story. 

We think our advantage is that our devices are manufactured in Europe and the market has been looking for alternative solutions. Sales have exceeded our expectations and we have hired many new experts with tremendous experience in post press. It has been important to offer complete systems.

WTT: Koenig & Bauer is the press manufacturer with the widest portfolio. We have not even touched upon flexo, metal print, security print. Do they play a role in the U.S. as well?

KR: We are present with all lines here in North America. In flexible packaging we are successful with our CI flexo presses. We have a very strong installed base and currently two installations in progress and more projects on the way. There is great potential to grow our market as we have a solid portfolio from small, compact to large machines. Our Flexotecnica flexo presses are used for printing on film, but also for gift wrap and folding carton. Our flexo and sheetfed sales teams work together and many users have both types of machines. 

We are the market leader in metal-decorating presses, but this is a focused market. Currently we have two installations taking place right now. 

We do have a great emphasis on the corrugated market with digital solutions as mentioned above as well as our new CorruCUT high board line flexo press.

WTT: Is Koenig & Bauer becoming a one-stop provider for all packaging print?

KR: This is a strategy set by the board many years ago and it is good to see the strategy having been implemented. We can also print on hollow objects like bottles and we have a coding division. The strategy to become preferred provider in packaging print has come true. 

WTT: Koenig & Bauer has always been a big supporter of drupa. Will Koenig & Bauer be at the virtual event in 2021?

KR: We will be participating and although we had a launch event in 2020 we will have some little surprises. 

WTT: With such a big portfolio, is there something left on your wish list for the future?

KR: We already have new innovations coming to the market like the VariJET and our new Rapida series. We are investing in additional digital business processes for our customers.