Former director Michael Kemp told the Official Receivers report on Powage Press that problems with a major item of equipment, which others have confirmed was its 74 Karat, were the main reason for the firms demise.


Powage Print, the firm formed from the assets of Powage Press, is due to decide whether to keep the press next week (PrintWeek, 6 April). Last week it finally signed it off as suitable for commercial work.


Steve Parker, group production director for Powage Print and Pepberry, said: "The Karat should have been operational within four months (of its installation in March 2000), but weve only just signed it off. It was a major reason for the firms problems.


"I sympathise with the creditors, Ive been in that position. If wed hit our projections after four months we wouldnt have got into problems."


KBA does not accept that the Karat was the reason for Powages downfall, but conceded that the firm was not the right choice of beta site.


"It was a decision by Scitex and Karat," said sales manager sheetfed presses Michael Grieger. "Maybe it was not the right company, but now Powage is a very good customer."


KBA UK has two new orders for the 74 Karat, one in Birmingham and the other in Kent. They will take delivery in September.


"Some big players are also very interested," added Grieger.
A finance package for the 74 Karat has been put together by Bank of Scotland Asset Finance with KBA and Premier Integrated Solutions. Available as either a lease or hire purchase over five years, it will cost under 10,000 per month and can include maintenance and insurance for accidental damage and breakdown.


Story by Barney Cox