If Geon is liquidated the effect on the printing industry may take tsunami like proportions, with dozens of suppliers, including many printing companies, likely to go down with it.
Australian Printer understands there are a host of smaller offset and digital printers owed tens of thousands of dollars each, non-payment of this would send a potentially fatal blow to many of these companies.
The paper merchants will be insured, but given the likely bill faced by major insurer QBE its premiums are almost certain to skyrocket, increased costs which will be passed on to printers in the form of higher paper costs.
Credit costs from suppliers will be increased, and credit terms tightened, meaning loans will be harder to get, and more expensive if you can get one.
If the receiver fails to find buyers for the businesses offset press salesmen, particularly those trying to sell long perfectors, will be in for a tough couple of years, as liquidation will mean a raft of B1 eight and ten colour Heidelbergs coming onto the market.
On the bright side though there will be some $200m-$250m worth of print coming back onto the market around 10 per cent of the nation’s total sheetfed spend, and market prices may rise.
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