A partnership-based technology platform helps extend existing coated and uncoated brands to function in both traditional and Indigo digital print systems
August 2007
By Paul Busche
As advertisers and others seek to break through the mass media clutter, markets for products that support targeted, focused communication continue to grow. Internet spending growth is driven by advertisers' desire to direct resources to specific consumers already predisposed to their products.
In the paper industry, high quality digital grades are the equivalent platform for this level of customized communication. Papermakers are working to improve quality and reduce costs to enable continued expansion of this rapid growth market. They are also looking to differentiate with paper capabilities that are recognized as meeting high quality standards.
The Digital Development Dilemma
The discussion over the potential that digital printing holds for the paper industry has now turned from whether it will be realized to how quickly the market will develop. Before moving aggressively, it is important for the papermaker to understand which print engines or technology platforms will capture the digital growth markets. This will allow the producer to optimize their digital grade to the performance characteristics needed to create high impact, customized communication. Growth in digital grades will accelerate as advertisers and others are able to find the right combinations of papers, print engines and inks (or toners) to effectively influence consumer behavior, drawing additional advertiser dollars back to print communication.
Paper mills desire to create a universal sheet, allowing for production efficiencies and the greatest possible volume. However, with the shear breadth of digital technologies employing contact and/or non-contact application of dye, pigmented liquid ink or dry toner systems, the concept of a universal sheet is more difficult to realize than in paper segments with single purpose uses.
Thrown into this equation, printers have become more demanding as their digital business evolves from the back room to an integral component of their growth strategy. A recent Rochester Institute of Technology (RIT) study found that digital printers primarily choose digital printing papers based on both runnability and print quality (Figure 1).
With the rapid evolution of print engines, ink and toner, keeping paper performance in step can be a daunting task. For the papermaker, the added costs of optimizing to the various specifications are being absorbed across a relatively limited number of tons. However, the expertise gained in making these adjustments will enable papermakers who invest in this work to benefit disproportionately from future growth.
Growth in customized communication requirements is pushing digital grade papermakers toward a flexible technology platform that allows for quick grade changes. To make this customization affordable for the papermaker, these flexible digital grade platforms need to be built on a base paper that can be sold in existing non-digital grades. The digital papers also must be readily created with the current production assets, eliminating the need for capital upgrades or costly off machine modifications of the paper.
HP Indigo Press Leads the Pack
In the fast paced digital market, one print platform stands out. Printers looking to substitute high quality offset printed materials have found the Hewlett-Packard (HP) Indigo digital press to handle the job effectively.1 Info Trends Inc, an industry market research firm, ranked the HP Indigo press line as the leading brand for digital presses in the US high volume segment.
During the 2006 calendar year, HP Indigo presses reached a 41.9% market share in the high volume segment, growing at an industry best 49.5% year-over-year. Among high quality color production devices, the one million-plus duty cycle segment includes HP Indigo presses 3050, 5000, w3200 and w3250, as well as on presses created by Xerox, Kodak, and Xeikon.
Info Trends further details a lead by HP Indigo of 9 percentage points accomplished by capturing much of the segment growth. This is further supported by2 HP market reports of 40% impression growth year-over-year. Papermakers heavily invested in premium-offset grades have recognized the emerging potential of the HP Indigo print platform and are now responding by developing Indigo capable brands, with varying degrees of success.
While HP presses have a clear lead, this is a rapidly developing market that requires papermakers to track it with substantial diligence.
Unlocking the Digital Market Potential
For paper mills pursuing the HP Indigo digital market, Frank Romano, professor emeritus, School of Print Media, RIT, reported that one3 of the most formidable challenges has been developing papers that work efficiently on HP Indigo presses. Designed for the digital printing revolution, this press utilizes a new ElectroInk technology that produces excellent results but demands more of the printing paper than other digital technologies.
Many paper mills were slow to tackle the technical challenges even as the digital print platform held great promise, with a key differentiator being print quality approaching or exceeding some forms of traditional printing. The market was small and the path to a reliable and cost effective surface treatment was elusive.
When paper mills first began addressing digital printing needs, many papers required an external coating application treatment in order to be HP Indigo compatible. Specialty mills and converters jumped on a primary technology and produced treated versions of their trademarked brands. While this treatment was marginally effective in delivering a satisfactory HP Indigo-printed result, the process and the economics are not optimal. The process requires mills to produce the paper, ship it off for treatment, and then ship it back for sheeting, packaging and, finally, distribution.
At the same time, other issues surrounding this treatment were significant. The six-month (or less) shelf life of these treated papers was causing obvious problems for mills, distributors and users alike. This set the stage for further development of alternate technologies with varying degrees of performance and manufacturing success.
In 2005, the announcement of the formal joint development agreement between Nalco and Mohawk Papers marked a turning point with the introduction of the i-Tone papers (see Pulp & Paper, December 2005, p. 36). This partnership of a supplier and paper mill demonstrated that performance hurdles could be removed in a relatively short period of time when resources are combined.
As the market continued to develop and printers increased their demand for high performance sheets, HP's certification process for Indigo capable papers was modified by RIT in 2006 to provide better guidance in terms of print quality and press runnability.
The certification process modifications raised the bar, placing higher demands and highlighting the best in class papers with a ranking from 1-3 stars for key parameters. Many paper mills that are now faced with recertifying their grades and meeting growing pressroom demands must reconsider how they will continue to evolve their Indigo grades.
In light of pressure to improve financial performance, many paper mills are reducing staffing, rationalizing brands and continuing to drive production efficiencies. These factors are hitting the industry at a time when flexibility could be the key to financial security. Transitioning traditional grades to address the digital print market and keep pace with this period of change will help determine the look of the paper industry over the next decade.
Taking a Cue on Collaboration
The paper industry can look to Procter & Gamble (P&G), a company known for innovation in consumer markets, as an example of the increasingly collaborative new product development approach being taken in many industries. The company realized that even with extensive investment, internal development did not always achieve the desired result or keep pace with the demanding consumer markets.
For this reason, P&G is now reaching out to the global research community through interactive independent innovation websites, such as www.ninesigma.com and www.yet2.com. A.G. Lafley, P&G's chairman, president and CEO, has stated a clear signal for change: "Our vision is simple. We want P&G to be known as the company that collaborates - inside and out - better than any other company in the world."
Xerox has recently used this same approach to seek partners to develop paper technology for the next generation of inkjet printers. International Paper followed suit with four grade-development projects posted on the www.ninesigma.com website, with an offer for funding to deliver a proof of concept. This open invitation indicates there is a desire to speed up the pace of development through new, nontraditional technology partners.
Nontraditional Partnerships Offer Promise
A recent announcement by Nalco Company regarding the launch of its trademarked Diamond digital printing technology for HP Indigo presses demonstrates the recognition and willingness of the paper industry to break from traditional supplier relationships. Since 2005, Nalco has worked with mills around the globe to develop custom-designed Indigo capable grades.
Diamond technology combines components, process knowledge and formulating expertise centered around the base sheet and size press or coating systems. This approach also takes into consideration furnish and operational parameters that paper mills can leverage. The goal is to extend existing coated and uncoated brands to function in both traditional and Indigo digital print systems.
According to Terry Gallagher, Nalco's global graphic papers strategic business unit leader, the company's approach is to collaborate with all parties invested in the process. Nalco has developed working relationships with the Indigo press owners through the North American user group – the Digital Solutions Cooperative (Dscoop) (as the sidebar, Dscoop, below describes).
Also, RIT, as the owner of the certification process, has direct engagement with HP, and with operational, technical and business partners in the mills. The effect has been to enable mills to quickly develop high performance grades with minimal capital investment and desired manufacturing flexibility. In addition, printers can continue to use their traditional offset grades with the expectation they will perform on the Indigo digital press.
Nalco is exploring the use of a Diamond digital printing technology co-branding model with paper mill partners to offer an on-machine, quality alternative to traditional treatments that have been commonly used in early development of digital grade papers. Printers expect a consistently high level of performance with their traditional offset brands in the Indigo digital print environment.
More importantly, all parties invested in this process through a higher level of cooperation will ensure that the Diamond technology platform evolves with the fast pace of print engine, ink and operational challenges. In today's dynamic digital market, this co-branding approach can support efforts by papermakers to assure printers of high quality performance with their Diamond supported brands.
The ongoing collaboration of industry stakeholders leveraging a combination of technologies and process knowledge can lead to the rapid development of competitive solutions for the digital print market by improving pressroom efficiency and ensuring continued quality gains as technology evolves. Market growth will further accelerate as the end-product image quality resulting from these developments helps advertisers to cost effectively reach consumers with customized, high impact messages.
HP Indigo Endorses Diamond Technology
Nalco's trademarked Smart Solutions offering for digital printing not only affects paper performance and print quality, but can also create a differentiation in ink transfer and blanket compatibility on the HP Indigo series of printers, leading to improved pressroom efficiency and quality gains. This level of performance led HP Indigo to endorse the Nalco Diamond digital printing technology as a leading contender in the market.
"We are thrilled to work with Nalco to help provide solutions to the always changing and rapidly growing digital marketplace," said Laura Field, HP media manager, Indigo Products Div, North America. "The high level of performance that Diamond technology offers was a key factor in our decision to work with Nalco to develop the full potential of the digital printing market. We share a commitment to help papermakers succeed in this market – enabling rapid market growth."
The benefits for all the key stakeholders from the OEM, printer, and supplier to the papermaker go beyond technical performance. The ability to increase the speed of the development process while creating global standards and consistency reduces uncertainty, resulting in improved market acceptance. In the end, all parties should benefit by expanding the market potential and profits through sharing the risks and rewards.
Today, printing and writing producers are looking toward grade development as an opportunity to improve their competitiveness by entering higher value digital markets. Paper mills struggling to meet these demands will benefit through effective use of new and existing levers, resulting in improved furnish flexibility, operational stability and machine efficiency.
As an example of how the technology can make a difference, Nalco formed a joint development agreement with a North American mill. The performance deliverables achieved for a basis weight range of 27-100 lb included:
- 95% or more ink adhesion, multicolor black ink
- < 1MM ink peel on score test
- Excellent ink transfer and blanket compatibility
- Extended shelf life with stable adhesion and optical properties
- Ease of clean up at the size press and coater
- Cost effective replacement for Sapphire technology, by eliminating many if not all of the negative attributes
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| A digital solutions cooperative |
Founded by HP Indigo users and the HP Indigo team, the Digital Solutions Cooperative (Dscoop) is a new, user-driven community of HP Indigo press owners and their sales, marketing and production teams working with HP Indigo professionals. Dscoop's focus is for these teams to support each other as a way to improve print businesses and the backbone technology of HP Indigoâs digital solutions.
"It's our aim that HP Indigo customers and affiliated professionals will use the Digital Solutions Cooperative as their front-line peer-to-peer resource for learning and sharing," says Jack Glacken, president of the Dscoop board.
Some of the Dscoop preferred partners in or affiliated with the pulp and paper industry include Abitibi-Consolidated, Finch Paper, Iggesund Paperboard, Mohawk Fine Papers and Nalco Paper Services Div.
Dscoop membership has rapidly grown to 1,500 members due to the unprecedented level of exchange between Indigo press owners, suppliers and HP, reports Glacken. The cooperative's website is www.dscoop.org. |
Paul Busche is marketing manager, business development, for Nalco Company, Naperville, IL.
- InfoTrends Inc, "U.S. Production Copying & Printing Market Placements: 2006," March 30, 2007.
- HP internal data.
- InfoTrends Inc, "The Opportunity for Print On Demand Solutions in the Label Industry," April 2006.
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