The company will cease production and development of its PlateDriver products and focus its efforts on the packaging sector.

According to Esko-Graphics president and CEO Kim Graven-Nielsen, the move was made because the violet market is "very difficult" at the moment.

"It represents a changing market and we are not seeing profits increasing in that sector," said Graven-Nielsen.

He added that job losses were expected to account for around 15% of the workforce.

"When it involves people it is always a very difficult decision. But we had to make one that was right for the business," said Graven-Nielsen.

He also stated that customers would not be adversely affected by the move. "We do not want to leave customers behind and we intend to fulfil all our obligations to them in moving forward," added Graven-Nielsen.

Esko-Graphics will now shift its focus onto its Scope JDF-enabled workflow software, smaller format CTP devices for polyester and violet plates and its four-up Computer-to-UV-Plate product Espresso.

Graven-Nielsen added that the company's efforts in packaging was due to growth in that market.

"There is 11% growth in that sector this year and there was substantial movement in packaging last year. It makes sense for our business," he said.

At Drupa in May, Esko-Graphics launched its 4pp PlateDriver Compact. The company also showcased the Espresso, which is a B2 machine with TIFF interface. Esko-Graphics also launched enhanced software components for Scope.

Story by Philip Chadwick