Towards the end of this year Crown Van Gelder will have two of its main investments in 2018 fully operational. First: the soft calender on the PM1 enables production of most of the product portfolio on both machines. This allows further focus on the High Speed Inkjet, Label and Packaging markets with our products, services and technical support.
Second: the Automated Guided Vehicles in the warehouse are fully operational in combination with the new warehouse management system. The AGVs take the reels from the production lines for storage in the warehouse and put them afterwards in place for loading. The overall investments since the beginning of this year add up to € 14 mio. These further investments improve the production performance and capabilities.
To further strengthen its position as leader in the High Speed Inkjet market Crown Van Gelder will adapt the business to the changing world. Unexpected high pulp costs in combination with a highly unpredictable market, make our projections for 2019 challenging.
The continuously high pulp cost outlook for 2019, in combination with the situation that these higher costs can only be partly passed on to customers, requires realignment of the organization and focus on the High Speed Inkjet, Label and Packaging markets. Crown Van Gelder will adjust production output slightly to the changing business climate and implement a more flexible planning throughout the year for both machines. The entire organization will be adapted accordingly.