Goss Graphic Systems has ceased production of newspaper presses in the US for the first time in its history as the North American recession bites further chunks out of its order book.

The firm closed its Cedar Rapids production plant in Iowa at the end of last week with the loss of 370 jobs. All production will be handled by its European sites at Preston and Nantes and its Asian sites in Japan and China.

European director of marketing David Stamp said the general recession had badly hit the North American publishing and printing sectors, resulting in significantly lower orders.

The Cedar Rapids plant primarily produced Newsliner, Headliner and Metroliner presses.

Stamp said the move was very much a vote of confidence in the groups European and Asian plants, although it wouldnt lead to expansion at the four sites while the US market remained in its current depressed state.

But one rival disagreed: Lead times will grow. Its terrible news for the US.

He said the groups problems could be attributed to the Chapter 11 bankruptcy protection it entered then exited in 1999 (PrintWeek, 26 November 1999).

But Stamp said lead times would be no different from those of rivals like MAN Roland and said Preston was already geared up to export to all corners of the globe.

The Preston plant used to produce presses for the North American market while Nantes specialises in the Universal and Colorliner products.

Service for the US market will be unaffected by the closure, said Stamp. The groups US service and spare parts operations are based at its headquarters in Westmont, Illinois.

Heidelberg has also added to the competition in the newspaper press market with its Mainstream press.

Stamp said: We all watch Heidelberg with interest. It will be a long road for them to get true entry into the market.

Story by Gordon Carson