Having made its mark in Australia despite a tough financial climate, Chinese plate manufacturer Xingraphics now has set its sights on further growth through partnerships

To understand the ethos of Chinese plate manufacturer Xingraphics, you have to go back. Its story began in the conventional plates sphere back in 1994, but a major turning point came in 2002. This was the year the company struck up a partnership with Creo and moved into digital thermal technology. It was a significant tie-up and the association with such a major player helped set Xingraphics apart from its Chinese counterparts.

So its recent history has been defined through this partnership with the West. But its future also hinges on building bridges with the established, respected players from Europe and neighbouring Japan. Corporate vice president Safwen Hijazi stresses how crucial the Creo connection is to understanding the Xingraphics ethos.

“What Creo gave Xingraphics was consistency through quality control, manufacturing know-how, and standardisation. The brand powerhouse that was Creo shared that consistency of manufacturing with a Chinese manufacturer. They didn’t want their plates manufactured there with the Creo brand if it wasn’t consistent, high-end quality.”

The Creo connection may have ended when Kodak acquired it in 2005, but it wasn’t the end of Xingraphics’ focus on global partnerships. Fast forward to Drupa 2008. The German trade show marked a Xingraphicsmajor milestone for Xingraphics, which used the halls of the Messe Dusseldorf to really stake a claim outside its home territory. “In February 2007, when our first plate shipment went outside China, Europe became a very important market for Xingraphics,” says Hijazi.

The company’s foray into Europe was not without its problems though. Its biggest hurdle came in the form of Belgian pre-press giant Agfa, which took Xingraphics to court in The Hague over alleged copyright infringement in the Chinese company’s FIT and FIT Xtra thermal plate lines. In July, the court ruled in favour of Xingraphics. “These big players will always try to slow down a competitor – that’s the game,’ says Hijazi.

It was to be a huge vote of confidence for the Asian manufacturer. “It’s never good to have a legal case hanging over you. So to have a win in Europe – in Agfa’s home territory – speaks volumes. It’s a real boost for the whole organisation,” explains Hijazi.

In fact, he looks at it as a marketing exercise, and something that proves Xingraphics’ manufacturing mettle.

Plates alliance

The ruling opened the door to another major new partnership, this time with Europe’s pre-eminent print manufacturing company. As of October, Heidelberg has been rebadging Xingraphics plates for its Saphira range. “We are the only plate maker outside the major three that manufactures under the Saphira brand,” says Hijazi.

He says this shows how the court win galvanised Xingraphics’ partners around the world.

“That’s the reason why Heidelberg moved forward with us – they only did that after the court case. For Heidelberg to look at Xingraphics after the court case is a stamp of approval,” he explains.

Hijazi says that Heidelberg subsidiaries in more than 15 countries are now ordering substantial volumes of Xingraphics plates for Saphira stocks around the world.

Heidelberg isn’t the only German press maker to back the Chinese firm. Manroland has now signed on to distribute Xingraphics’ branded plates to different countries around Asia Pacific, including Malaysia, Singapore, Thailand, Vietnam and Indonesia.

Of its growing roll call of partners, one stands out as 2009’s biggest success story. “The other important alliance we have that keeps getting stronger and stronger is with Screen,” he says. Xingraphics currently has an OEM agreement to sell Screen’s PlateRite CTP system under its own brand. It also distributes Screen’s TrueFlow pre-press workflow. The tie-up began in China, and Australia has become a testing ground to take the venture around the world.

Real alternative

“That relationship will only get stronger. We’re talking about other locations now where it doesn’t conflict with their distributors,” he says. “The relationship reinforces our strategy of being an alternative to the major three. We are the only other plate maker Screen OEMs to other than Fuji and Agfa.”

The past year has been a good one for the partnership. The Screen OEM deal only began in early 2009, but Xingraphics managed to install 10 platesetters across Australia, despite a background of heavy economic pressures. “2009 was a difficult financial year and capital equipment was a lot tougher to sell. So to have 10 units sold in the year under a relationship that only started in January 2009 was a fantastic achievement. We’re forecasting to double that in 2010 – or hopefully more than double it,” says Hijazi. The tie-up in Australia is also strengthened thanks to the involvement of Xingraphics’ Australian distributor, Ferag.

The year ahead is all about big ambitions. As a test bed for the Screen tie-up, Australia has proved fertile, and there’s no doubt the company is setting its sights outward Hijazi explains that the manufacturer isn’t represented in New Zealand – yet. “We’re actively looking for a partner in New Zealand. We just haven’t found the right partner.”

Taking the States

But Hijazi also explains how Xingraphics has used another region – Europe – as the trial run for an even bigger challenge: tackling the US. “Europe as a market is about the same size as the US, but we said let’s tackle Europe first because we can take it one bite at a time, one country at atime.” Now, he says, is the right time to target the States, in which Xingraphics currently has only 1% market share. The company has hired a US team, which is set to start in February and March, and is looking to set up a logistic hub in Miami for Latin America and North America.

But despite the bold strategy and backing of such established partners, Xingraphics still must work against the fact customers, especially Western print companies, are wary of Far East-made goods. China has a long way to go before it can expect the reception afforded to neighbouring Japan. This will change though, says Hijazi. “You look at many Japanese manufacturers 25 years ago – no one would have touched them. China has an even harder time than Japan.”

To counter this, Xingraphics takes the kind of global approach associated with its rivals. This includes only using German and Japanese aluminium. Operating facilities around the world also helps its global credentials. Hijazi also stresses that partnerships are one of the most vital components of this strategy.

He comes back once again to the company’s heritage and recent achieve-ments. “This is why we have spread the message about the Creo association,” says Hijazi. “This is why we talk about winning the court case. We’re not just copying. It’s our own technology. We do things differ-ently to other Chinese manufacturers. We may use Chinese manufacturing, but so do Agfa, Kodak and Fuji – we’re taking an international view of the company.”