Mitsubishi terminates GAE agreement

Mitsubishi Heavy Industries Europe (MHIE) Printing Press Division (PPD) has ended its distributor agreement with Litho Supplies' subsidiary Graphic Arts Equipment (GAE).

Patrick Brennan, UK sales and marketing manager for the company, said: "We officially terminated our agreement with GAE as of Friday, 8 January. Following GAE's entry into administration we were left with no other option but to look for a new distributor for the UK and Ireland.

"In the meantime, MHIE PPD will support all UK and Ireland customers' requirements for parts and services from our head office in Leeds, which houses our spare parts facility, technical team and showroom until a new distributor is appointed."

He said that, with immediate effect, all Mitsubishi customers should call 0113 240 7584 for spares and services requirements. He added that the company was already contacting customers to inform them of the changes.

Brennan said GAE had continued to use Mitsubishi's spare parts and services while under administration, but that payment was guaranteed by the administrator.

"It's a shock to Mitsubishi as much as anyone else," he said. "We will be left with some exposure and we will be making a claim".

According to Brennan, the Litho Supplies agreement had also included provision to house some GAE equipment at the Mitsubishi Leeds showroom. He said that such equipment had been removed before Christmas, but was told that this had been sold and that Litho Supplies' equipment regularly moved in and out.

The agreement had also included the transfer of a small number of Mitsubishi staff to GAE. However, Brennan said: "We are looking into the possibility of utilising the [former] Mitsubishi personnel as part of an independent service team. It's something we're looking into the possibility of."

Litho Supplies took on Mitsubishi's sheetfed sales and support work in August 2009, when the company centralised the Japanese giant's European business in Leeds.

The distributor went into administration on 22 December with administrators MCR, but the consumables division has since been bought by DM1(Herts) and is being run by former Litho Supplies shareholder and group sales director Eddie Williams.

Litho Supplies subsidiary GAE went into administration on 5 January.