Goss International reorganises globally after pulling plug on French subsidiary

Goss International is reorganising globally after pulling the plug on its main French subsidiary.

The company says Goss International France has entered insolvency proceedings via a judicial reorganisation process, after  the business became “financially untenable and unsustainable”.

Other subsidiaries outside France – and the parent company – are not affected by the procedure and continue to operate as normal. “Strong support” has been put in place for customer orders already in motion in France, a statement by president and chief executive Rick Nichols says.

The factory in Montataire – acquired as part of its acquisition from Heidelberg of what had been Harris Web – formed the major part of Goss International’s European manufacturing operation following the closure of factories in Nantes (France) and Preston (UK).

Originally the Marinoni plant, it had been updated by Heidelberg with modern foundry facilities. But even before the Nantes (former Creusot Loire) plant closure, Goss had been sourcing parts for French-built presses from third parties and even the Chinese plant of what was then still its joint venture with present owners Shanghai Electric.

Under today’s reorganisational change, Goss’s European operations become a single “unified, pan-continental sales and service organisation”.

Nichols says the global transformation of the company will also include reorganisation of the business and a focus on new, neighbouring product markets.

Goss will be organised around regional parts, service and support centres.

It is also following the example of others in the industry – including KBA and pre-administration manroland – in seeking other ways outside newspaper and commercial printing to use its facilities and expertise.

In a statement today, nine months after his appointment, Nichols says Goss will focus on continuing to serve existing customers and growing market share in its core markets, while expanding into new, neighbouring product markets where it has a technological competitive advantage.

“The needs of our customers have shifted over recent years as our industry environment as a whole has changed,” he says. “Today, customers tell us they need a focus on simple, easy to use and cost effective technology supported by world class aftermarket services.

“Goss continues to manufacture the highest quality print machinery, but I believe that where and how quickly customers can access service and support is now more important than where products are manufactured.

“We also recognise that our environment for doing business has fundamentally changed. The markets to drive our future growth and profitability are shifting. We have decades of offset printing expertise. That gives us a significant advantage not just in our core newspaper and commercial printing sectors, but in other industries like packaging and emerging printing industries as well. Together, these are the reasons why we are transforming as a company.”

He says that “regrettably, despite Goss’ significant historical support and investment in its French subsidiary, Goss International France, that business has become financially untenable and unsustainable”.

Goss has already leveraged its commercial web technology with the limited success of its Folia press for sheetfed markets and more promising Vpak packaging presses. Nichols says the company will “continue to diversify its product portfolio to drive revenues in markets where the company’s technology and engineering expertise give it a competitive edge.”

Nichols says packaging is an attractive industry where Goss’ technology gives it a competitive advantage: “I’m pleased that we’ve already made inroads into this market with our Vpak products, but we will be expanding more aggressively in this sector as well as researching and entering other new markets where we hold a competitive advantage.

“This transformation of the company and refocus on growth is critical for the future of our business.

“Goss has been through a decade of change, but I am confident we are near the end of that period. We have had to take some very difficult decisions but these were absolutely necessary in light of the facts.

“Goss has a bright future ahead of it and I look forward to continuing to lead the company toward sustainable growth,” he says.