Plockmatic Group's assembly lines will soon no longer be operating in Milton Keynes, England. The Swedish manufacturer of finishing equipment, known in particular for its in-line stitching and folding modules, has confirmed the transfer of this activity to its Riga site in Latvia.
The newly-built Riga site will thus see its capacity increased, both in terms of assembly and logistics. This ramp-up will be accompanied by the development of new finishing technologies adapted to digital sheet-fed presses, whether toner or inkjet. The Group is also counting on its UK base to continue designing equipment specifically for the fast-growing packaging and label sectors.
The UK unit in Milton Keynes will not be closed, however: the English site will retain the R&D, technical support, after-sales service, marketing and warehousing functions of Morgana Systems, a brand of offline post-press equipment historically linked to the site and integrated into Plockmatic Group since 2013.
Rising costs, the supply chain and US taxes
Ed Hudson, Managing Director of Morgana Systems UK, explains in a press release that the relocation of production is due to the challenges posed by the rising wage costs of the group's customers and the uncertainty of supply chains, compounded in his view by the impact of US customs duties. "All alternatives to job cuts will be studied" he adds. A consultation process with the employees concerned, whose number we do not know, is underway.
For CEO Jan Marstorp, this geographic refocusing is designed to exploit economies of scale and improve the Group's responsiveness.
This rationalization comes with the arrival of the BLM7000 stapler, low-consumption UV led coaters, as well as a range of folder-enginers with integrated cutting modules and feeders designed for the long sheet format market. "This will enable us to optimize our value proposition for our customers. In addition, we are aware of the need to further develop our finishing range, particularly through increased automation. We are convinced that the time to act is now."
