By Kent Shah
In 1975, the printing ink expert Ron Barry founded Color Converting Inc. (CCI) in the USA, launching production of inks for package printing in Des Moines, state capital of Iowa. Three years later, the firm was already employing 14 people and generating revenue of about a million dollars. In the first five years, CCI sold 90 percent of its inks in Iowa and neighbouring Mid-Western states. But as early as 1978, management was busy on expansion plans, setting its sights on the whole US market. CCI’s management decided on a portfolio of specialist products and invested in the development of printing inks for quality packaging, covering a broad range of applications. For American Can in Des Moines in 1979, CCI introduced two new important products: ‘Colorgloss’ was one of them – a polyamide-based printing ink for surface printing on polyethylene bags. In terms of gloss and stability at low temperatures, ‘Colorglass’ was superior to the products of competitors Sun Chemical and Inmont. And secondly, CCI began to market fluorescent printing inks used to print the polyethylene packing for paper kitchen towels. In flexo printing, the combination of white and fluorescent inks doubled printing speeds compared to competitors products. At American Can, CCI also tested an in-house concept, with employees having a workplace on the customer’s facilities.
By 1981, other formulas were also ripe for application, and CCI was able to revolutionise the market with new products. Printing inks for adhesive lamination (is this term correct?) comprised the most important new product group bearing the name ‘Colorbond’, which was succeeded in 1982 by the improved and expanded product line ‘AXL’ for adhesive and extrusion lamination. Due to its good value, AXL became a growth motor for CCI, accounting for half of its revenue at this time. AXL was supplemented by surface-printing inks for deep frozen foods, specially heat-resistant inks for coffee packaging (‘Colortherm’) and the fluorescent inks for packaging of cosmetic and kitchen towels, already mentioned above. Additionally, CCI developed ‘Colorflex’ and ‘Colortone’ – a water-based printing-ink technology for multi-wall paper bags.
In 1983, the newcomer CCI had achieved its breakthrough. Technical expertise and robust, user-friendly quality inks had secured a good reputation and were recommended by satisfied customers. As a qualified supplier for big package printers like American Can, Bemis, Cyrovac and Printpack, the company was set for further growth.
Such growth was, however, only possible because the company did not simply offer inks, but also various services concentrated on its core products. To boost customer loyalty, CCI offered seminars on printer’s premises, covering specialist topics like adhesion theory, the surface properties of foils and improvement of printing-ink performance. Additionally, the arguments for and against use of water-based inks for foils were discussed with printers.
In this manner, CCI did not just supply the industry with excellent products, but also became a technical partner for its customers.
The next milestone was the introduction of a dispensing system. Using it, printers could mix ink concentrates themselves, depending on their customers’ wishes. Such universally applicable dispersions reduced customers’ stock requirements, cut production time and facilitated just-in-time delivery by printers. This was another plus for CCI on the fast and service-oriented US market.
With an improved Ink Management System (IMS) for printers, CCI refined in-house services in 1997 – which significantly contributed to customer attraction and retention. The new ink “Weathertuf” – highly light, heat and humidity resistant for products stored outside – ensured CCI’s technological edge in this segment, too.
In late 1999, CCI opened a state-of-the-art, 30,000 square kilometre factory in Des Moines. To meet demand for printing inks in consistent quality, the firm had invested 18 million dollars and set new standards of efficiency, environmental protection and waste reduction. With the acquisition of Timco Ink and Prism Ink, CCI expanded its portfolio to include new technologies and markets. Impetus in product development came from cooperation with suppliers of the printing industry, such as the producers of paper, foils and photopolymer plates. In the Research and Development department, staff worked on improving existing product lines and creating new printing inks for various applications. For instance the ‘Sealtech’ product family was extended by new formulae for flexo and package gravure. A popular product was the phosphorescent ink ‘Glow-in-the Dark’.
In 2003, the company was taken over by Siegwerk, with whom CCI had already negotiated previously. At this time, CCI was growing by about seven percent a year and continuously expanding its market share in the USA. The acquisition boosted Siegwerk’s internationalisation process, while CCI saw it as a means to strengthen the global presence of its products and secure jobs in the long term. After selling his shares, Ron Barry left the company. The other members of management retained their positions, augmented by a few managers from Siegwerk, who moved to the USA.
The author, Kent Shah built up the technical unit of CCI and is now a Siegwerk executive in the NAFTA region.
