The division will include Encad, its wide-format printer subsidiary, a new venture developing digital asset management and publishing services, and the NexPress and KPG joint ventures.

Digitally driven commercial printing is a large and growing market, and is a core part of our long-term vision to drive revenue and earnings growth, said Kodak president and chief operating officer Antonio Perez.

Kodak has the assets and competencies to be a leader in this market. These will be the foundation of Kodaks on-demand colour printing and network publishing efforts.

James Langley has been appointed president of the new division. He was formerly Hewlett-Packards president of commercial printing.
He will report to Perez, who was also a senior manager of HPs printing and imaging business before retiring in 2000. He joined Kodak in April with the task of driving growth in printed output.

Asset management and publishing services will be led by Philip Gerskovich, currently chief strategy officer and general manager, software and digital services business in Kodak's Digital and Applied Imaging division.

Heidelberg and KPG both said they did not expect any changes in their relationships with Kodak.

Kodak declined to comment on what proportion of revenue and profit the new division would contribute to the firm or on any other details of the new unit.

It will reveal further details at the end of next month.