Dutch security printers Royal Joh. Enschedé have issued a press release advising that, following a change to their strategy, they will soon stop producing banknotes due to over capacity in the banknote market.
Instead, the company will focus on being a High Security Printer in the international market for Stamps, Visas and Tax Labels, as well as brand protection.
The company’s banknote division will therefore be closed, resulting in “a considerable loss of jobs”. Staff were advised of the situation yesterday, on 1 December 2016.
According to Joh. Enschedé:
“The international market for banknotes has been characterised by overcapacity for years, whereby many parties are competing for tenders with rock-bottom prices. State printing offices from various countries are increasingly also competing, winning export orders at unrealistically low prices alongside their protected position in their home market. This is creating even greater pressure on prices and an imbalance in the competitive landscape. Even with highly efficient business processes and much enhanced productivity, Royal Joh. Enschedé cannot operate at such even lower price levels. It would mean that the company would have to start consistently executing loss-making orders, which is not commercially prudent.”
By changing its focus and reducing the size of its organisation, the company believes its future will be secured.
From small beginnings
Royal Joh. Enschedé is one of the oldest business in the Netherlands having started as a small book printing shop in 1703.