Packaging printing is an important growth segment for ink manufacturers, and that expansion is occurring worldwide. Still, there are regions that are enjoying more rapid growth, and ink companies are seeing opportunities in these areas..
 
MENA (Middle East & North Africa), Central Asia, and in Eastern Europe are strong growth areas, and Toyo Ink Group has made a major move by acquiring 75% of DYO Matbaa Mürekkepleri Sanayi ve Ticaret Anonim Sirketi (DYO Printing Inks), a subsidiary of Yasar Holding Anonim Sirketi.
 
DYO Printing Inks is the largest ink manufacturer in Turkey, with leading positions in gravure inks, flexo inks, offset inks and can coatings; Ink World estimates its sales at $55 million in 2014. The company is headquartered in Manisa, Turkey, with color production units in Istanbul and Ankara.
 
Keiji Higuchi, Corporate Planning Division, Toyo Ink SC Holdings Co., Ltd., said that the opportunities in the packaging market in MENA (Middle East & North Africa), Central Asia, and in Eastern Europe make the addition of DYO Printing Inks an ideal move for Toyo Ink.
 
“The Toyo Ink Group has been stepping up efforts to expand inks and coatings for the packaging market, including materials for food packaging,” said Higuchi. “As a critical next step toward growth, the Group has made it a priority task to build a business base and expand its businesses in MENA, Central Asia and in Eastern Europe, as well as strengthen its activities in the European region. To accelerate expansion, local production capability was seen as an essential component in establishing a regional operating foothold on which to springboard our global operations.”
 
This is where DYO Printing Inks comes in. DYO Printing Inks is the country’s largest domestic ink manufacturer of gravure inks, flexo inks, offset inks and can coatings, and maintains a solid base in the country.
 
“The acquisition instantly positions us as a major player in the regional printing sector,” said Higuchi. “It also supports the Group’ strategy of expanding its presence in the region as we progress towards entering markets in MENA, Central Asia, and Eastern Europe.”
 
Higuchi said that DYO is an attractive investment for many reasons.
 
“First is its strategic geographical location,” said Higuchi. “With one foot in Asia and the other in Europe, Turkey covers a vast area serving as a gateway to the Middle East, Africa, Central Asia and Eastern Europe for our various businesses.
 
“Turkey also has a young and diligent workforce providing a balanced mix of Asian and European work and management styles,” he added. “Its growing population is also expected to create strong domestic demand for goods and services. The Toyo Ink Group aims to support this rise in consumption with products customized to the needs of the local market. In addition, the customs agreement between Turkey and the EU offers another significant benefit as goods can travel between the two entities without tariff restrictions.”
 
Higuchi added that DYO has well-established relations with local businesses and agents in Turkey, and Toyo Ink Group is expected to leverage these relationships to secure opportunities and strengthen our position in the market.
 
“Various downstream manufacturers for such goods as automobiles, consumer electronics and processed foods are concentrated in the region,” Higuchi said. “We expect the region’s growing economy to bring opportunities to create new business and expand existing ones.”
 
For example, the new subsidiary serves as Toyo Ink Group’s first production base established west of India (Toyo Ink India), acting as a gateway to markets Toyo Ink has yet to develop for offset and liquid inks. It is also the Group’s first production base established west of Southeast Asia, which are markets Toyo Ink is targeting for its coatings and metal decorative inks businesses.
 
Toyo Ink Group’s plans for Turkey are not only relegated to production and sales activities.
 
“We’ve also laid down a blueprint for growth, which includes plans for an R&D center catering to markets in Europe and the Middle East,” Higuchi reported. “For UV inks, the Toyo Ink Group purchased UV ink specialist Arets (in 2013), which operates a factory in Belgium. With the exception of UV product lines, we will market the Group’s other businesses in the region with Turkey serving as a critical gateway. We also have plans to set up an integrated supply network for raw materials, such as pigments and resins, with the Group’s production bases around the world.”
 
Toyo Ink Turkey Kimya Sanayi A.S., our wholly owned sales subsidiary, was established earlier this year in Istanbul, Turkey. Up to now, we have been conducting marketing activities in the country in phases. Looking ahead, we expect our Turkish operation to play a pivotal role as an operating base for propelling the Group’s global reach.”