First Turkish packaging printer signs subscription contract with Heidelberg
- Sentez Group becomes first packaging producer with pay-per-use agreement also including large format
- Sentez investing ahead of schedule and using digitized solution to speed up growth and boost productivity in highly competitive market
- Increasing number of customers won over by all-in package including press, software, consumables, and service in conjunction with Smart Print Shop
The subscription model has now also reached the Turkish print market with the pay-per-use agreement between the Sentez Group and Heidelberg. From left to right: M. Süleyman Öncel, CEO of the Sentez Group, Stephan Plenz, member of the Management Board responsible for Digital Technology at Heidelberg, and other Sentez and Heidelberg staff during the customer’s visit to the Print Media Center Packaging at the Wiesloch-Walldorf site.
Stephan Plenz (left), member of the Heidelberg Management Board responsible for Digital Technology, and M. Süleyman Öncel (second from left), CEO of the Sentez Group, sign the two subscription contracts on the press control station of a Speedmaster XL 162.
Turkish packaging producer Sentez, which is based in Istanbul and has a workforce of around 550, has elected to use the subscription model of Heidelberger Druckmaschinen AG (Heidelberg) as part of its growth and digitization strategy. That makes the Sentez Group the first Turkish company opting to conclude this type of contract with Heidelberg and use a large format press. The pay-per-use agreement with Sentez includes not just one but two subscription contracts – one each for the 70 x 100 centimeter and 120 x 160 centimeter sheet formats. For both formats, Heidelberg is providing an all-in package that covers press, consumables, service, workflow, and performance consulting. This is replacing four competitors’ systems that Sentez has been using to date. In terms of value, it is one of the most comprehensive subscription contracts yet that Heidelberg has concluded with a single customer. Sentez is one of Turkey’s largest packaging printers and has a production area of some 55,000 square meters (just under 600,000 square feet). The company mainly produces folding cartons for the food and pharmaceutical industries, with around 20 percent of its products going to neighboring countries.
“We weren’t actually planning any major investments in 2018, but the pay-per-use model being offered by Heidelberg will enable us to grow faster and significantly boost our productivity in a fiercely competitive market,” says the Sentez Group’s CEO M. Süleyman Öncel, explaining the reasons behind his investment decision. “The digitized solution from Heidelberg and the comprehensive consumables package providing peace of mind are also further increasing our level of automation,” he adds.
“It’s becoming increasingly clear that our use-based subscription model in conjunction with the Smart Print Shop is exactly what the sector has been waiting for. More and more customers in all market segments are keen to enjoy the benefits of higher productivity, increased flexibility, and a lower capital commitment. And only Heidelberg offers this combination!” stresses Stephan Plenz, member of the Heidelberg Management Board responsible for Digital Technology.
Customers pay for usage in new Heidelberg digital business model
The Heidelberg subscription model is following the growing pay-per-use trend in mechanical engineering and aims to move away from growth based solely on selling and installing printing capacity. Under this Heidelberg model, customers only pay for the number of sheets actually printed. Under the conventional business model, they buy the presses and pay separately for consumables or services. With the new digital business model, all the equipment, all consumables required – such as printing plates, inks, coatings, washup solutions, and blankets – a comprehensive range of services geared to availability, and consulting services intended to boost performance are included in the price per sheet to be charged. This differs significantly from the click charge model already introduced by digital press suppliers. Although these suppliers also charge per sheet, they mainly base this on their own costs and not on the customer’s business model.
Video material and further information for anyone interested in the Heidelberg subscription model is available here: