Tender for a Vendor?

by John Bryan

Press makers are restless, judging by announcements from Rockwell International Corp. and KBA-Motter Corp.

One development was a biggie: Rockwell recently announced it will sell its Graphic Systems Division, makers of the famous Goss line of printing presses that has been a staple for generations of pressmen.

It's not for lack of profit—the division pulled in about $700 million in fiscal 1995 and earned $66 million.

So why sell? Because, plain and simple, the division is an asterisk on the corporate organizational chart. Rockwell is heavily involved in electronics, automotive and aerospace. Big mechanical hunks of steel with cylinders, gears and reels don't fit with Rockwell's highly electronic future, a company spokesman says.

Maybe they'll sell it to a company whose vision still includes heavy industry. Maybe they'll sell it to a competitor—picking up Goss technology would make any press company an instant behemoth in the industry. A company spokesman says they plan to complete a sale by this summer.

Meanwhile, KBA-Motter of York, Pa., the North American web-press division of Germany's KBA Group, "will become more responsible for the North American manufacturing of KBA newspaper presses," says President Scott R. Smith. A possible reason: as a hedge against any tariffs arising from Rockwell's antidumping petitions.

"We'd identified a continual need to put parts, service and training in one area," says Gary Owen, KBA's director of marketing and newspaper sales. "It is all good for the customer.…Training is a huge part of sales. We put in the press and these guys have a specific group for support now."

John Bryan is a member of the Technology Resource Group at the Los Angeles Times. E-mail, john.bryan@latimes.com; phone, (213) 237-4711.


TechNews Volume 2, Number 2: March/April 1996
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