A Time for a Change

Exclusive interview with Awad Alanazi, new General Manager of Alkhorayef Printing Solutions

Alkhorayef is a highly respected name and brand in Saudi Arabia and Alkhorayef Printing Solutions (Part of Alkhorayef Group) is embedded in country’s graphic arts industry since many years ago. Following the merger of two Alkhorayef companies, TransOrient Modern Machinery (TOMM) and Al-Nakhil Paper Industries, Alkhorayef Printing Solutions(APS) was born more than two decades ago. The company offers a comprehensive portfolio of equipment and products including manroland offset presses, complete range of Screen pre-press equipment, packaging and converting equipment and Flexo labels presses from Bobst and other post press solutions from top international brands. The company also boasts digital division offering MPS solutions and a wide range of large format equipment for indoor and outdoor advertising as well as PC’s and Laptops. In addition, the company distributes wide range of consumables including ink, plates, film, blankets and chemicals.

In order to find out more about company’s approach to graphic arts industry in the midst of Coronavirus pandemic as well as its plan for future we talked with company’s new general manager, Awad Alanazi. Here is the complete text of our Q&A:

As a major player in graphic arts Industry what is your contribution to KSA vision for digital transformation 2030?

2030 vision is aimed at diversifying the economy of the country whereas the private sector has to play a major role and definitely digital transformation is very important to all of us. We are at Alkhorayef fully understand the direction of digital transformation and based on that we will play a role in the graphic arts and packaging industry, helping the industry by offering the required digital technology and expertise to transform not only the private sector but also Governmental organizations within the 2030 vision direction.

A dynamic change and adaption to the new market transformation became a requirement and I think anybody who didn’t adapt and transform his business will be out of game soon as he will not be able to sustain the client base. The traditional way in commercial printing will not be able to keep up with the fast changing market demands. So by helping this sector with transformation process we will be contributing to KSA 2030 vision while at the same time we are closely working with the main manufacturers in this industry.

Covid 19 disrupted activities of many businesses, how did it affect your company and what preventive measures you have taken in order to manage the crisis?

As a matter of fact, COVID-19 did affect the economies globally including Saudi Arabia and the impact on businesses varies from sector to sector. Our activities at Alkhorayef Printing Solutions declined during the lockdown as well as most of the organizations in the country, especially commercial printing sector. The packaging sector was less impacted. Some packaging sectors even recorded growth because of the increase in demand for packing and delivery during the lockdown.

Managing the crisis required some sort of changes and adaption with new norm of business to protect the company and sustain our operations while at the same time taking care of our employees and their families during the pandemic. To do so, Alkhorayef has taken a number of steps during the lockdown to safeguard the company during and after COVID-19. After we returned back to work we implemented a series of preventive measures to ensure that we will operate without risk of Corona infection. Also we have taken this opportunity to do some structural changes to gain the agility necessary for new market approach and adapt rather than waiting for the market to rebound and return to pre Covid situation, something that I think will not happen. Therefore, we are working closely with our partners to diversify our offering, focusing more on digital, label printing, packaging industry and automation.

Coronavirus has pushed businesses everywhere into an accelerated state of digitization and automation, in which ways you are helping print service providers to automate their printing activities? Do you think now there is more demand for end to end automated workflow from printers in KSA?

Well, as I said earlier, after COVID-19 everything has been disrupted. Digitization and automation became necessary more than ever. Now there will be more demand for short runs, because customers are now asking for less quantities.  Printers need digital workflow and automation now more than ever to be able to respond to such demands on time while offering the quality expected from the clients. That is going to be difficult without automation and proper workflow at any printing press. Also cost is an issue. Conventional printing processes require major work force and operators to perform the duties, which is not a competitive approach. Therefore, automation is necessary.

We at Alkhorayef provide automation and workflow to our clients in the market, offering the latest production line technology and software. All our new products can be easily integrated with many third party software from other suppliers.

You are offering a wide range of printing equipment for graphic arts industry in Saudi Arabia, however some sectors of printing including newspaper and commercial printing are declining, at the same time demand for packaging, label and digital printing is rising, how does this trend affect your business?

That’s true, commercial printing and newspapers were declining even prior to COVID-19 and from that perspective we are introducing digital printing to be part of commercial printing press where they can complement their offset setup and introduce new services and cover new areas. Digital printing offers printers leeway in the midst of such decline.

On the other hand, digital label printing and Packaging is growing and going to grow further in Saudi market. The main focus of 2030 vision is focusing on diversification of economy by introducing and increasing local production, while encouraging manufacturers to start manufacturing part of their products in Saudi. This policy definitely will create opportunities for label printing and packaging industry, especially in pharmaceutical, food and logistics sectors. We at Alkhorayef have wide range of products and services from reliable partners in Europe where they are pioneers in their industries, and that’s for sure giving us the privilege to support the local industry with such technology and contribute to 2030 vision.

Manroland announced it will not participate in drupa 2021, do you think this is a right decision as far as your marketing activities are concerned?

Well, I’m sure manroland took the right decision from their perspectives and for sure it was not easy for them as well. Drupa is the only exhibition that all the companies involved in graphic arts cherish, and the only exhibition that we all look for to participate and wait for every 4 years to see what new technology will be introduced. It has become part of printing industry culture to some extent. So cancelling the participation in such event definitely is not easy, but at the same time due to uncertainty created by Coronavirus, the prospects of the participation and visiting the show in 2021 is not promising. On the other hand, due to the preventive measures and steps taken by governments to deal with Corona it is even difficult for manroland and other big names to participate. Taking that into consideration we understood their decision. Also participation in such event will cost a lot of money. Moving all the machines and setting up equipment as it used to be just doesn’t make sense anymore. Also many other big brands decided not to participate as well.

So, I think it will have some impact on the marketing activities. At the same time online webinars offer new opportunities. Our partners are taking advantage of this online experience as well as private visits if necessary. The lockdown situation during last couple of months created good opportunities to use online and remote communications, which proved to be efficient. Many businesses are now even thinking of using them on permanent basis for some areas.

Are you planning to participate in Saudi Print exhibition? If yes, what will you be showing in the exhibition?

We used to participate, but we are not considering taking part this time around, mainly because of COVID-19, but we might participate in the future.

Many companies are cancelling their participation in big international exhibitions and instead focusing on hosting online webinars, which they now believe it is a better approach even after the pandemic is gone, do you agree with this assessment?

Definitely online webinars and remote work has proven to be useful and reliable practices during the lockdown. Actually we have changed our way of thinking about doing business and some sectors in our company are now working remotely. But I think international exhibitions still have their charm and impact on people.  Usually people believe what they see and experiences closely. It gives them confidence and makes it easier for them to make a decision. However, that will remain as an option while in future the trend will be more towards online experiences.

Do you think the Saudi economy is on the rebound after the Coronavirus crisis?

Well, looking into Saudi market and compare it to world economy after pandemic, it’s clear that Saudi economy is less impacted, although Saudi economy was hit from two fronts: drop in Oil prices and Coronavirus lockdown. Therefore, yes I think Saudi economy will rebound after the coronavirus especially there are many mega projects within tourism, entertainment and infrastructure sectors related to vision 2030. These projects are going to kick off, boosting the market and creating a positive impact on economy.

Have your customers cancelled orders due to pandemic?

Actually we haven’t got cancellation so far but I can say there is delay on decision making for some of the projects due to the current situation and decline in business. However, at the same time there are other projects going on and we have already started working with our clients. I think now it’s about priorities; where to invest and how to move with market direction. Automation and new technology are what clients are looking for to achieve better efficiency and respond to new market demands.

Where do you think printing industry is heading in Saudi Arabia? More packaging, more digital printing, less offset?

I think it’s clear that the packaging, digital label printing are growth areas. That’s where we are heading, so to say. Commercial offset has been experiencing downward trend for some time now, while at the same time the digital printing is growing. Therefore, conventional commercial offset printing has to change and actually it is changing.

What would be the next step for Alkhorayef Printing Solutions? Are you planning to enter new sectors of printing industry such as flexo printing, narrow web presses?

Well, as I said we have done some changes to be agile and co-up with market dynamic and demand. Entering flexo and narrow web presses definitely is part of our strategy and we are already there but we will put more focus on this area going forward. Being in this industry for many years we are aware that our partners are dependent on our services. That gives us the responsibility to lead the way in our segment and bring the necessary changes to the market. Also part of our responsibility is to be the right advisor to our partners while giving them the right support and technology to develop their businesses.