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©2010 Static Control Components, Inc. All rights reserved worldwide. The stylized S, Static Control and Odyssey are registered trademarks of Static Control Components, Inc. All other brand or product names are trademarks or registered trademarks of their respective companies.
VIEW ON DEMANDwww.scc-inc.com
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inar
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Get free technical training to help you make more money.Go to www.scc-inc.com to Register
Static Control ZhuhaiTelephone: +86 756 3320300 4008 838 233 Fax: +86 756 3321700E-Mail: [email protected]
Static Control Hong KongTelephone: +852 2427 6011Fax: +852 2427 6677E-Mail: [email protected]
World leader in printer cartridge remanufacturing technology and expert training.
Over 14,000 Products
Products Now Ship Quickly from OurZhuhai Distribution Center
FREE View on Demand WebinarsSimple as Watching TVSM
©2010 Static Control Components, Inc. All rights reserved worldwide. The stylized S, Static Control and Odyssey are registered trademarks of Static Control Components, Inc. All other brand or product names are trademarks or registered trademarks of their respective companies.
VIEW ON DEMANDwww.scc-inc.com
web
inar
sGet free technical training to help you make more money.
Go to www.scc-inc.com to Register
Static Control ZhuhaiTelephone: +86 756 3320300 4008 838 233 Fax: +86 756 3321700E-Mail: [email protected]
Static Control Hong KongTelephone: +852 2427 6011Fax: +852 2427 6677E-Mail: [email protected]
World leader in printer cartridge remanufacturing technology and expert training.
Over 14,000 Products
Products Now Ship Quickly from OurZhuhai Distribution Center
FREE View on Demand WebinarsSimple as Watching TVSM
December 2010 | www.recyclingtimes.com.cn2
All rights reserved. © 2010 by Recycling Times Media Corporation. The contents are not be to copied or republished without official written consent. The editorial content does not represent official positions of Recycling Times Media Corporation.
RecyclingTimes
Acquisition has become a hot topic again. Recently MBP Group
announced the acquisition of Spanish compatible cartridge producer GTA Sistemas.
Last December, NER Data Products sold the NER Imaging Supplies division and its wholly owned subsidiary Image1 to Clover Technologies Group. This year in April, Print-Rite acquired a major controlling stake in AEG Photoconductor (Shanghai) Co. Ltd. (APS) and Media Sciences acquired Master Ink in late April. Then Armor Group bought Wecare4 in May. The majority ownership of Clover Technologies Group and West Point Products was transferred to Golden Gate Capital in June. Future Graphics Imaging Corporation merged into its parent corporation, Mitsubishi Kagaku Imaging Corporation in July. On October 25, 2010, German KMP PrintTechnik AG acquired Intercopy Holding GmbH. Clover Holdings acquired Environmental Reclamation Services (ERS) in mid-November and Luke Entertainment acquired AccuBrite.
We can see from the above mentioned cases that there were only two Chinese aftermarket players involved in those acquisitions. With over 500 companies in China, how can the number of acquisitions be so low? Apart from imperfect enterprise management, core technology and private owned brands, some excellent companies fail to realize acquisition because they are not familiar with the processes of mergers and acquisitions. Or some international buyers are afraid of potential failure during integration posed by culture differences. This brings us back to one word: communication.
Trade shows provide a great platform for the industry to communicate and understand each other better. Zhuhai Expo 2011 is scheduled from October 13 to 15 in Zhuhai. It is estimated that 400 exhibitors and nearly 10,000 visitors will attend the event. Looking forward to meeting you in Zhuhai!
Tony LeePublisher & Managing Director
editorialeditorialwww.recyclingtimes.com.cnPublisher & Managing Director
Tony [email protected]
DirectorsDavid Gibbons
EditorialEditors
Johanna Breen Cherry Xu
[email protected] Jiang
SalesSales Manager
Anna [email protected]
Account ManagerKevin Zhu
[email protected] Executives
Sally [email protected]
Susi [email protected]
Operations and MarketingOperations Manager
Charles [email protected]
Operations AssistantWilliam Feng
[email protected] Manager
Morrow [email protected]
AccountingFeng Li
Published byRecycling Times Media Corporation
Address5F Pacific Insurance Building, Jiuzhou Ave, Zhuhai, China
Tel:+86 (0)756 3220716 Fax:+86 (0)756 3220717
Email:[email protected] Website:www.recyclingtimes.com.cn
RecyclingTimesThe magazine by the industry, for the industry.
Recycling Times Magazine
www.recyclingtimes.com.cn | December 2010 3
Recycling Times Magazine
contentscontentswww.recyclingtimes.com.cn
Industry UpdatesStatic Control comments on Lexmark's denied retrial motion
HP settles with Mipo, SinoTime in inkjet 337 case Lexmark vs Ninestar et al. case over toner scheduled for hearing
FG conducts free STMC training for customers in China
US, UK and Canada issue new rules for air cargo of printer cartridges
Kyocera Mita sieze counterfeit toner cartridges
Media Sciences sells toner business to Katun
MBP Group acquires GTA Sistemas
Sensient opens new plant in Guangzhou
Print-Rite wins Hong Kong Outstanding Corporate Citizenship Award
6
7
8
9
Product ReleaseFG releases Kaleidochrome color chemically produced toner (CPT) and OPCs
Faroudja Toner announced drum for Xerox Docucolor C3535
Apex releases ink and laser chips for HP128A and Dell 21 devices
Chips for Xerox 6121 from Hi & Bestech company
MSE releases solid ink sticks for Xerox Phaser color pirnters
Tianyi Technology offers chips for Samsung
11
12
OEM NewsHP hits one billion cartridge milestone
Xerox works with Close the Loop to recycle returns
15
Features2010: A year in review18
Just a Minute with David GibbonsRe-USE, Re-USE, Re-USE!4
ProfilesSpeed Infotech expands worldwide42
Tech ZoneRemanufacturing the Xerox Phaser 3100 Toner Cartridge44
Market DataVisitor survey at RemaxAsia Expo 2010
OEMs continue to grow in Q3
33 36
OEMs continue to grow in Q3Leading printer manufacturers such as Xerox, Lexmark and Canon have reported their third quarter performance and both demand and sales are up, resulting in higher profits or revenue.
Office3Q FY
3Q 2010 Actual / FY 2010 Projection(Billions of yen)(Billions of yen)
600
900
2 000
3,000Sales Growth rate y/y( ) Local currency base
( )
404 507 433300
600
1,645 2,015 1,984 1,7371,000
2,000( )
03Q09 3Q10 3Q10
0FY09 FY10 FY10 FY10
Previous Current Current( Excluding new consolidation
17 7%750
OP ratioOp.Profit 18.5%150
OP ratio
projection
Growth rate y/y
projection Projection( Excluding new
consolidationeffects )
consolidationeffects )
229 308285 293
17.7%13.9% 14.8%14.1%
250
500
8059 76
15.1%
50
100Growth rate y/y .
229 308285 2930
FY09 FY10 FY10 FY10
8059 760
3Q09 3Q10 3Q10Previous Current Current( E l di Previousprojection
Currentprojection
CurrentProjection
( Excluding new consolidation
effects )
( Excluding new consolidation
effects )
+20.6%(+27.7%)+25.6% +35.7%
+30 3% +27.7%
14.5%
Static Control comments on Lexmark's denied retrial motion
Lexmark and Static Control have both filed notices of appeal. Static Control seeks substantial damages caused by Lexmark’s anti-competitive behavior and unfair and deceptive trade practices. Lexmark is expected to appeal the same issues which Judge Van Tatenhove rejected in his recent order.
Speed Infotech expands worldwide
OEM NewsRicoh puts fingerprint technology on printers
HP opens design center for printers in Singapore
Fuji Xerox to enter home laser printer market
Canon India launches exclusive brand store
OEM expansion plans for 2011
1516
17
Speed Infotech CEO hinted at plans to launch a new international distribution hub outside of the Chinese mainland. “We have been studying the investment opportunities in Europe and hope to release details about our company expansion projects in the coming months.”
Just a Minute with David GibbonsRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn4
Re-USE, Re-USE, Re-USE!The catchcr y of the remanufacturing industr y for more than
two decades has been all about re-use. In fact in the sustainable
environmental hierarchy (reduce-reuse-recycle) “re-use” is a much
better result than “recycle”.
And now it appears terrorists have picked up on the idea too.
Dubai police found explosives inside a printer cartridge onboard a
cargo plane from Yemen (see photo). Intelligence experts say they
bear the hallmark of al-Qaeda and represent a shif t in terrorist
tactics to commercial targets.
Yemeni forces ar rested a woman af ter sur rounding a house
in the capital Sanaa. The news of the arrest came as the British
Government confirmed that the sophisticated bombs—contained
inside the printer cartr idges —were
designed to explode mid-air on their
way to the United States.
According to various news sources,
the cartr idge bombs contained the
same powerful explosive used by the
so-called Underpants Bomber in the
alleged plot to blow up a plane over
Detroit on Christmas Day last year.
So is that where all the empties are
going?
In all seriousness though, could the
shipping of empty printer cartr idges
to remanufacturers —needing to “re-
use” them as pr inter car tr idges — be
threatened? Will this alleged terrorist
p lot now hold up the supply of empties because they could
possibly be bombs?
The real challenge is to convince governments that the granulating
and stripping down of cartridges and recycling them into plastic
rulers and park benches is the last stage of
the process—reserved only for those parts of
cartridges which cannot be used again.
But that argument has become a l l the
more dif f icult now, as governments may
order ALL used printer cartr idges to be
granulated so that they do not end up in
the wrong hands.
Industry UpdatesRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn6
Static Control comments on Lexmark's denied retrial motion
HP settles with Mipo, SinoTime in inkjet 337 case
L exmark International Inc.’s motion for
a new infringement trial was denied on
October 28, 2010. Lexmark sought to
reverse the June 2007 jury verdict which found
that Static Control did not induce infringement
of Lexmark’s patents, and that Static Control’s
customers did not infringe Lexmark’s patents.
In a 37-page ruling, U.S. District Court Judge
Gregory Van Tatenhove rejected Lexmark’s
arguments, and upheld the jury verdict in favor
of Static Control in its entirety.
Edwin Swartz, president of Static Control,
was pleased with the ruling. “When Lexmark
sued us on New Year’s Eve, eight years ago, I
told the press that this was round one in a 12
round fight,” Mr. Swartz said. “Well now we are
at the end of round 12, and Static Control is still
standing.”
Mr. Swartz said that the jury and judge’s verdict
were good for the remanufacturing industry
and good for consumers. “The court’s decisions
encourage competition which gives consumers a
wider range of choices at better prices. Lexmark
was trying to exclude competitive chips which
meant higher prices in the market,” said Mr.
Swartz.
Lexmark and Stat ic Control have both
filed notices of appeal. Static Control seeks
substantial damages caused by Lexmark’s anti-
competitive behavior and unfair and deceptive
trade practices. Lexmark is expected to appeal
the same issues which Judge Van Tatenhove
rejected in his recent order.
H ewlet t -Packard Co. has asked
an administrative law judge to
dismiss Mipo America Ltd. and
SinoTime Technologies Inc. from a Section 337
investigation over ink cartridge patents, saying it
has reached settlements with the companies.
HP and its Houston unit Hewlett-Packard
Development Co. LP filed motions in the US
International Trade Commission (USITC), asking
Administrative Law Judge Robert K. Rogers
Jr. to cease its investigation of Mipo America
and SinoTime Technologies as it has reached a
settlement with them.
The USITC began investigating the companies
alongside several others in relation to a 337
lawsuit alleging the use of patent infringing and
potentially stolen HP parts.
Administrative Law Judge Robert Rogers Jr.
said of both cases: “I find that termination of
this investigation does not impose any undue
burdens on the public health and welfare,
competitive conditions in the United States
economy, the production of like or directly
competitive articles in the United States, and
United States consumers.”
Therefore, he decided to grant both motions,
though this is only an Initial Determination,
and is subject to review by the Commission.
The terms of the settlements are currently
confidential.
Hongwei Shang , the a t tor ney
represent ing Mipo America and
SinoTime also refused to offer details
on the settlements.
H o w e v e r, S h a n g d i d s a y t h e
agreements were in no way connected
to recent unsuccessful attempts by
other Mipo entities to exit the case via
consent order.
I n S e p t e m b e r J u d g e R o g e r s
denied the exit attempt by the Mipo
Technology units, saying the consent
order should have contained a mention that the
ITC has subject matter jurisdiction in addition to
other kinds of jurisdiction. It also should have
declared that Mipo Technology expressly waived
all its rights to seek judicial review or otherwise
contest the validity of the consent order,
according to the judge.
The order additionally left out any reference to
the stipulation being “for settlement purposes,”
Judge Rogers said.
The Mipo Technology units' latest termination
motion, lodged on October 19, remedied the
omissions, according to the companies.
The ITC opened a review in June into whether
the Mipo entities, SinoTime and others infringed
the HP patents-in-suit, which cover thermal
inkjet printing devices and specifically inkjet
cartridges that include a printhead.
The commission voted to take on the case after
HP complained in May that the respondents
were importing and selling cartridges with
printheads and other components that infringed
the asserted patents.
HP filed a parallel suit May 20 in the US District
Court for the Northern District of California
against the same companies over the same six
patents.
U n d e r H P ' s c l a i m e d i n v e n t i o n s , a
microcomputer activates ink jets on the moving
printhead to appropriate locations, causing
the printhead to eject ink drops onto the
printing surface and to form desired images and
characters.
The patents-in-suit are U.S. Patent Numbers
6,234,598; 6,309,053; 6,398,347; 6,412,917;
6,481,817; and 6,402,279
Industry UpdatesRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 7
T he judge ALJ Charneski announced two orders for the schedule
of Lexmark against Ninestar and some 20 companies over toner
patents. March 12, 2012 was set as the target date (which is 17
months after the institution of the investigation). The judge further indicated
that the Initial Determination on violation shall be due November 10, 2011.
In another order, the judge set the procedural schedule for the
investigation, including an August 15, 2011 start date for the evidentiary
hearing.
This case was filed on an August 20, 2010 following a complaint by
Lexmark International, Inc. of Lexington, Kentucky alleging violation
of Section 337 in the importation into the US and sale of certain toner
cartridges and components thereof which infringe certain claims in US
patent numbers. 5,337,032, 5,634,169, 5,758,233, 5,768,661, 5,802,432,
5,875,378, 6,009,291, 6,078,771, 6,397,015, 6,459,876, 6,816,692,
6,871,031, 7,139,510, 7,233,760, and 7,305,204.
Lexmark vs Ninestar et al. case over toner scheduled for hearing
New security rules banning printer cartridges from USNew US security rules are in place banning all cargo from Yemen and
Somalia and prohibiting toner and ink cartridges weighing more than
one pound from passenger flights.
The new rules are a direct response to the thwarted terror plot that
could have taken down two cargo planes over the US last month.
Terrorists in Yemen had hidden two powerful bombs inside printers and
shipped them to addresses in Chicago.
As well as the bans, high risk cargo will no longer be allowed to fly on
passenger planes. Until now, the US has required that high risk cargo be
screened before it's loaded onto US-bound passenger planes.
UK to bar unaccompanied air cargo from Yemen, SomaliaUK also barred unaccompanied air cargo from Yemen, Somalia after ink
cartridge bomb. From November 9, 2010, air passengers flying from UK
airports will be banned from carrying larger printer cartridges in their
hand baggage for at least a month. Sending larger printer cartridges by
air cargo out of or into the UK will also be prohibited, unless the sender
ships through a government-approved shipper.
The banning of larger printer cartridges – any cartridges weighing over
500 grams (17.6 ounces) – in hand luggage and air cargo will be in place
for a month initially.
Canada creates new security rules Canada announced several new aviation security rules, including
restrictions involving large office-sized printer toner cartridges, just days
after it banned all air cargo originating from Yemen.
Passengers are no longer allowed to take large printer toner cartridges
in checked bags on any flights departing Canadian airports, or in carry-
on bags on any outbound flights from Canada to the US, Transport
Minister Chuck Strahl announced November 8, 2010.
Passengers are still allowed to carry smaller toner cartridges, such as
those used in home printers. The new security measures were effective
as of November 8, 2010.
US, UK and Canada issue new rules for air cargo of printer cartridges
F uture Graphics (FG) demonstrated its commitment to
technical support and training in China by providing free
STMC training for its customers.
The training session was conducted by Mr. Will Niederstadt, a
20-year industry veteran, and took place from August 23 through
September 1.
Six different Chinese businesses sent a total of 50 representatives
to achieve certification. Participants included Beijing Laser Hi-
Technology Co. Ltd.; Jie Sheng (Zhuhai) Technology Co. Ltd.; Pacific
Plastic Product (ShenZhen) Ltd.; Zhuhai TopColor Image Products
Inc.; Zhuhai Top-Print Technology Co. Ltd. and Zhuhai Kolion Tech.
Co. Ltd. - Jet Rise.
Mr. Dick Yu, General Manager, Future Graphics China, said, “Since
STMC certification is viewed favorably around the globe, it’s an
important step in the development of the remanufacturing and
recycling industry. We are happy to help our customers gain this
certification with greater efficiency.”
Mr. Du of Beijing Laser agreed. “STMC certification provides a
more systematic method to regulate quality,” he added. “Now that
we have professional testing standards, we have clear guidelines in
which to conduct quality management.”
For more information about STMC, contact [email protected] or go
to http://www.i-itc.org/standards.htm.
FG conducts free STMC training for customers in China
Industry UpdatesRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn8
M edia Sciences International,
Inc. announced the sale of
its toner business to Katun
Corporation, a Monomoy Capital Partners
portfolio company.
On November 8, 2010, Media Sciences
Inc. , a subsidiar y of the Media Sciences
International, Inc., entered into an asset
purchase agreement (APA) wi th K atun
Corporation and one of its subsidiaries.
Under the terms of the APA, Katun purchased
assets used in the seller's toner business,
inc lud ing , inventor y, f i xed assets , and
intangibles (including the seller's business
name and trademarks) for approximately $11
million (the amount is subject to adjustment
based on the value of the seller's inventory
as finally determined within 30 days from
closing). Katun also assumed the liability for
all of seller's unfulfilled purchase orders, for
a defined amount for returns and allowances,
and for any post-closing liabilities under all
assigned customer and vendor contracts
arising out of the seller's toner business, but
not for any of seller's other liabilities.
At the same time, Katun and the seller also
entered into a master distribution agreement
by which the parties agreed that Katun will
be the exclusive worldwide distributor of
the seller's solid ink products for use in
Xerox color printers for a period of 3 years.
The part ies a lso entered into a l icense
agreement allowing the seller and its affiliates
to continue using its business name and
websites for up to two years.
The company also announced changes in its
leadership team. Michael Levin said the sale was
“the right decision for all constituents including
shareholders, customers, employees and
vendors”. He expects that the MSI business will
“thrive within the Katun infrastructure".
The company intends to host a conference call at
a later date to discuss its future opportunities.
Media Sciences sells toner business to Katun
R ecently, MBP Group has bought the
Spanish company GTA Sistemas.
Through this move i t a ims to
strengthen its position on an international
level and get closer to its Southern European
partners.
GTA Sistemas is a major player in Spain. With
18 years of existence, its distribution network
will be of great benefit to MBP Group.
Located between Nantes and Tangier, the new
entity of the group will allow MBP to optimize
its commercial position. The company states
that its bigger size and new competences
will help MBP Group to take up tomorrow’s
challenges.
After the acquisition, the GTA team will be
kept as well as the Ocean range of products
which is marketed by the company.
MBP has a strong export position and intends
to continue its international development
after the creation of a production plant in
Tangiers in 2008. MBP Group is now present
in two continents (Africa and Europe), in three
countries (France, Morocco and Spain) and has
about 160 employees.
GTA Sistemas was founded in 1992 in
Barcelona developing its recycling activity
together with the sale of compatible cartridges.
GTA Sistemas employs 30 people and had a
turnover of 5 million Euros in 2009.
MBP Group acquires GTA Sistemas
K yocera Mita has become the latest
OEM to crack down on counterfeit
cartridges, taking out an injunction
against a firm caught importing counterfeit
toner cassettes into Ireland, according to a
report by Yahoo.
The counterfeit haul has been valued at over
£430,000 by Kyocera Mita and the importing
company, which has not been named, has been
ordered to pay the vendor’s legal costs.
The case was brought to the vendor ’s
attention by a Dublin-based partner who had
concerns over the authenticity of the products
and handed them over to the vendor.
Kyocera Mita tested a batch, confirmed they
were not genuine and has now issued the firm
with an injunction ordering it to hand over the
counterfeit goods.
Jun Okumura, general manager of Kyocera
Mita, said taking action against counterfeiters
was always a priority for the firm.
He said: “ We wil l not tolerate trade in
counterfeit products, and will rigorously
pursue all parties in the distribution chain
to protect our intellectual property rights.
We see this as an important part of our role
of safeguarding the revenues of our channel
partners who could otherwise see unfair and
unlawful competition from sales of counterfeit
products.”
Kyocera Mita sieze counterfeit toner cartridges
Industry UpdatesRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 9
S ensient Technologies Corporation
has announced the official opening
of i t s new plant in Guangzhou,
China. The new facility includes an office and
laboratory building and production areas
for both food and non-food products. With
the addition of this facility in Guangzhou,
Sensient now has a presence in five locations
in China. Around the world, Sensient has
over 70 locations that provide specialized
flavor and color applications in 30 countries,
selling to more than 150 nations.
The new Guangzhou location contains
l a b o r a t o r i e s f o r r e s e a r c h , a p p l i c a t i o n
deve lopment and qua l i t y cont ro l . The
facility will significantly enhance Sensient's
capability to produce food and beverage
flavors and colors as well as fragrances and
pharmaceutical coatings.
At the official opening, Kenneth P. Manning,
Chairman and CEO of Sensient Technologies
Corporat ion, sa id, "This manufactur ing
facility is a key part of our global strategy and
it strengthens Sensient's presence in China.
The Guangzhou location positions Sensient
for growth in one of the most dynamic
economies in the world. It greatly increases
our production capabilities with state-of-
the-ar t equipment and new process ing
technologies."
Other Sensient locations in China include
a plant for processing dehydrated flavors in
Qingdao, a technical center and sales offices
in Shanghai, and offices and laboratories in
Beijing and Hong Kong.
Sensient also announced its financial report
for the three months ended September 30,
2010. Consolidated revenue for the third
quarter of 2010 reached an all-time record
level of $340.9 million, an increase of 12.4%
compared to the same period of last year.
Sensient opens new plant in Guangzhou
P rint-Rite Holdings Ltd. has won the
silver award in the manufacturing
sector category of the Hong Kong
Outstanding Corporate Citizenship Award 2010.
The award presentation ceremony was held on
November 8 and officiated by Mr. Henry Tang,
Chief Secretary for Administration of the Hong
Kong Special Administrative Region.
The Hong Kong Outstanding Corporate
Citizenship Award is one of the activities of "The
Hong Kong Corporate Citizenship Program”
organized by the Hong Kong Productivity Council.
The aim of the program is to promote the awareness
of corporate citizenship among local enterprises
and to encourage enterprises to establish their
civic responsibility values for incorporation in their
business strategies. Such concepts can be further
promulgated to employees, their families, customers
and the public.
Print-Rite was proud to receive this award
in recognition of its achievements in the
implementation and promotion of corporate
social responsibility. The company pledges to
continue to invest resources in environmental
protection, product safety, staff welfare and
activities supporting the community as well as to
provide customers with quality products and best
services through continuous innovations.
"We are extremely delighted to receive this
prestigious award. We will continue to put more
resources in corporate social responsibility to
support the society and the community as well
as to protect the environment," said Mr. Arnald
Ho, Founder and Chairman of Print-Rite Holdings
Limited.
Print-Rite wins Hong Kong Outstanding Corporate Citizenship Award
▲ Award presentation ceremony
Product ReleaseRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 11
A pex believes it has released the
first-to-market replacement chips
for the HP 128A series color
toner cartridges and Dell 21 series inkjet
cartridges.
In September 2010 , Hewle t t Packard
released the Laserjet Pro CM1415fn/fnw, a
new series of color laser MFPs, which have
aroused great attention for their compact
design, advanced functions and great price-
value rat io. Based on a well -establ ished
technology platform for HP chips, Apex
became, according to the technical staff
of Apex, “the first one among the industry
to launch the replacement chips with only
one month’s efforts”. These replacement
chips have comparable functions to OEM
chips, featuring a unique serial number and
firmware resistance.
This series of chips is designed with ASIC
technology, compatible
wi th Apex ’s Unismart
system. The ASIC design
g u a r a n t e e s t h e c h i p s
with low driving voltage,
low power consumption,
high stability, and high
communication speed.
Cus tomers cou ld use
these together with the
c o m p a n y ’ s U n i s m a r t
system to achieve flexibility and universality.
Also released are replacement chips for
the Dell21 series, for use with Dell V313/
V313W/P513W, DellV515/515W/P713/V715W
series printers. These are fully emulated and
verified by repeated tests, with functions
comparative to OEM. The chips in this series
have been built with Apex’s proprietary due-
core technology, which allows the cartridges
to print more than 20% than the OEMs’.
In addition, Apex released new inkjet chips
for the Canon iPF510 Series and new laser
chips for Ricoh C220 and Lexmark X203/204,
OKIC5600/5700/5650/5750/5800/5900/5850/5
950 cartridges.
For more information about newly released
chips, please visit www.apexmic.com, or
contact Apex’s account manager.
Apex releases ink and laser chips for HP128A and Dell 21 devices
F aroudja Toner has released a new drum for the Xerox
Docucolor C3535, it was announced.
“We came out with the toner four months ago, and it has
been a steady seller.” explained marketing director Tim Farrell. “So
we’re pleased to now offer the drum.”
The Faroudja drum for the Xerox Docucolor C3535 is without
gears, and is sold in any quantity the customer requests. Special
discounts are available if the product is bought in cases of 50.
The company says that recycling the drum unit is not difficult,
and complete instructions are available. “We think this is a good
opportunity, as the OEM drum units are over $200 and we can give
you a really low price on the drum” added Farrell.
Faroudja also released color toner in bags for the Samsung
CLP 315 in November. Ten kilogram (22 pound) bags are sold for
black, cyan, yellow
and magenta , and
c a n b e p u r c h a s e d
i n d i v i d u a l l y o r i n
multiple quantities.
Faroudja Toner announced drum for Xerox Docucolor C3535
• Contact Faroudja Toner Tel: +1 650-593-3862Fax: +1 650-593-3817Website: www.faroudjatoner.com.
F uture Graphics has begun shipping its world-renowned
color chemically-produced toner (CPT) and color OPCs
under the Kaleidochrome brand.
FG said the Kaleidochrome brand features the same high quality
CPT and color OPCs that customers have always received from FG,
sold under the same item number. There is no reason to requalify
because i t i s the same
product, producing the
same high yield; the same
superior fusing and the
same OEM-like print quality.
F G s h i p s f r o m t h r e e
North American and nine
international distribution
c e n t e r s . F o r m o r e
information, please contact
FG.
FG releases Kaleidochrome color chemically produced toner (CPT) and OPCs
Product ReleaseRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn12
H i & Bestech company has released chips for Xerox Phaser
6121color laser printer cartridges. “Thanks to our R&D team
special design, our chips are working worldwide” said Alvin
Hsu, sales director of Hi & Bestech Company.
Xerox Phaser 6121 printers’ specifications:
• Print Speed : Color up to 5 ppm and Black up to 19 ppm
• First-page-out time: 13 seconds monochrome and 22 seconds color
• Max. resolution :1,200 x 600 dpi x 1 bit
• Paper input: Standard: 200 sheet multi manual tray
• Monthly duty cycle: 2,600 pages
Hsu continues, “As an industry
partner for chip solutions, our
team is composed of qualified
engineers with more than 20
years on chip solutions and
production. Hi & Bestech chips
are full emulation with 100%
functionality but unique circuit
and firmware design from OEM
chips for Intellectual Property
protection and are fully RoHS
compliant”.
For more information, please
contact Hi& Bestech.
S henzhen Tianyi Technology has
announced the release of chips for
Samsung ML1911/2526/2581/651/4601/
4623 printers.
The product code for the newly-released
product is SMAR-S1911 and it is intended for use
in the MLT-D1053S/D1053L cartridge. The print
yield for this dedicated chip is 2,500 pages (Black)
which is the high yield of Samsung’s cartridge in
accordance with ISO/IEC 19752.
“ We are excited to supply the f irst - to-
market chips SMAR-S1911 for Samsung
ML1911/2526/2581/651/4601/4623 printers to the re-
industry and support recyclers all over the world”,
said Jacky Chen from Shenzhen Tianyi Technology.
Samsung ML1911/2526/2581/651/4601/4623
series printers are for everyday document
production in the office. They are designed
to meet all the needs of the standard office,
whether that is black & white, single-sided or
double-sided, single sheet output or booklet.
The devices enjoy a first page out time of less
than 10 seconds and monthly duty cycler of up
to 10,000 pages.
About Tianyi TechnologyShenzhen Tianyi Technology Co., Ltd is
specialized in R&D, sales and marketing of chips
for cartridges. It has been compliant with ISO
9001 quality standards since 2002.
Tianyi Technology offers chips for Samsung
M icro Solutions Enterprises has announced the
release of a complete line of solid ink sticks
for Xerox Phaser color printers. MSE is now
offering all of the most popular models of compatible solid inks
for models such as the Xerox Phaser 8400/8500/8560 and more.
Luke Goldberg, SVP at MSE Global says: “These products are
a great way to expand your color offering for these solid ink
printers. Solid inks offer great margin and revenue opportunities
for resellers seeking quality alternatives to high priced OEM
consumables.”
MSE is currently offering these in generic packaging due to the
custom requirements of this product. As volumes dictate, MSE
plans to expand the packaging options available for this product.
MSE utilized patent pending SCS technology to release toner
cartridges for the very popular CP3525 printers (CE250A/CE252A)
last month.
MSE has multiple certifications and accreditations including
ISO 9001 and 14001. As well as its engineering prowess, MSE also
prides itself on offering the highest levels of after-sales support to
its dealers through its consultative sales and marketing programs.
For more information, please go to the webisite www.mse.com
or call +1 818-407-7500.
MSE releases solid ink sticks for Xerox Phaser color pirnters
• Contact Hi & Bestech Webisite:www.tonerchips.comE-mail: [email protected]
• Contact Tianyi Technology Tel: +86 134 807 381 01Email: [email protected]: www.sz-tykj.com
Chips for Xerox 6121 from Hi & Bestech company
▲ CHIP for Xerox 6121
OEM NewsRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 15
H P a n n o u n c e d t h a t i t h a s
manufactured one b i l l ion ink
cartridges with recycled plastic
supplied from its closed loop cartridge and
recycled water bottles recycling program.
Along with hitting the big one billion milestone,
HP also announced plans to continue to
decrease its environmental impact by achieving
new goals, implementing more eff icient
programs and creating ways for the customer to
continue to be involved.
Having already collected approximately 160
million HP ink cartridges and 1.3 billion plastic
bottles, the company has pledged to use a total
of 100 million pounds of recycled plastic in
printing products by 2011 (over a four year span
starting in 2007).
According to HP, it has managed to reduce its
carbon footprint by an estimated 22%, fossil fuel
consumption by 50% and total water use by 69%
when compared to using virgin (new) plastics.
Beyond that, based on a new streamlined
recycling procedure started this year, the
reduction in total water use and carbon footprint
is an estimated 89% and 33%, respectively.
HP recently introduced the HP Envy e-All-
in-One, its first PVC-free printer and the HP
Deskjet 3050 all-in-one, made from 35% recycled
plastic.
HP hits one billion cartridge milestone
X erox Corporation launched a new
return and recycling program to
return toner and supplies and expand
the company’s effort to keep billions of pounds
of waste out of landfills.
"Our role at Close the Loop is to make the
returns process that much simpler so more
customers join in on the effort. Working
together with Xerox we push the goal of zero
waste forward to minimize our impact on the
environment.”
Xerox is partnering with Close the Loop, one of
the world’s largest recyclers of imaging supplies.
Close the Loop will collect customers’ returns
and manage the recycling on behalf of Xerox
using a patented material separation process that
recovers used materials for reuse in new printer
cartridges and other products.
In an initiative similar to Xerox’s popular
Eco Box program in Europe, customers in the
United States will place used supplies into a
collection box. When the box is full, customers
print a free-of-charge shipping label and send
the box to Close the Loop. Instructions are
printed on the boxes, which are now available
in the United States. Customers can order
the boxes through the redesigned return and
recycling website.
"During the past 12 years, our collaboration
with customers has kept more than 143 million
pounds of cartridges, bottles, and waste toner out
of landfills,” said Patricia Calkins, vice president,
Sustainability, Environment, Health & Safety.
Xerox works with Close the Loop to recycle returns
R icoh has put biometric authentication
technology on its latest multifunction
printers as part of a new strategic
alliance with Equitrac and BioStore.
They help customers securely release sensitive
information from its printers and MFPs. The
combination of technologies creates a secure
environment within which only the allocated user's
fingerprint can release documents; enhancing the
overall document security of an organization.
Equitrac software provides customers with the
tools needed to efficiently monitor, manage and
recover documents.
It works in tandem with BioStore's highly
secure, centralized Identity Management
System, allowing a single token of identity to
be used across separate applications within an
organization.
"MFPs are gateways to an organization’s network
and if not properly secured can lead to breaches in
data security that could inflict brutal implications,”
explains Alan Mason, managing director, Ricoh
Ireland.
"The partnership with Equitrac and BioStore will
allow us to deliver and support customers seeking
biometric authentication systems, and those who
want to incorporate this innovative technology into
new or existing Ricoh print solutions,” continued
Mason.
Jeroen Kamphuis, Alliance Manager, Equitrac
EMEA explains that fingerprint technology is the
safest possible way to identify the user.
"The replacement of cards and wasted paper
is also costly for schools, and by incorporating
biometric technology with their printers, schools
are able to oversee their document workflows
more closely, manage print costs and ensure
that only documents that are truly required are
printed.” said Nigel Walker, director of BioStore.
Ricoh puts fingerprint technology on printers
OEM NewsRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn16
H P has opened a design center for
its Imaging and Printing Group
in Singapore. The first of its kind,
the new design center will be responsible for
the design and development of inkjet and web
solutions products that will be used worldwide.
With user experience at the core of the design
process, the center will act as the Asia-Pacific
design hub to address the evolving needs
of consumers by designing and developing
appropriate products and innovations.
Vyomesh Joshi, executive vice president of
HP’s Imaging and Printing Group (IPG) said
the opening design center in Singapore would
ensure that the “design process benefits from
a pan-Asian customer perspective”.
T h e I P G D e s i g n C e n t e r
w i l l s e r v e a s t h e h u b f o r
al l regional design activity,
w o r k i n g w i t h H P d e s i g n
teams in India and China to
design and develop future
product lines sold worldwide,
including HP Deskjet printers,
HP Photosmart printers, HP
Officejet printers, HP Officejet
Pro printers and HP Retai l
Publishing Solutions. Many of
HP’s global OEM partners are
based in Asia-Pacific, so locating the design
center in Singapore “helps HP to work more
closely with, and manage these partners,
resulting in higher quality design, execution
and customer experiences”, according to the
company.
The HP IPG design team has a long history
in designing and developing industry-leading
products. One of the first products developed
by the Singapore-based design team was the
recently launched HP Officejet Pro line-up of
Web-connected and ePrint-enabled printers
for small businesses.
“HP’s des ign phi losophy i s rooted in
creating new user experiences. Our Singapore
design team is purpose built to tap into the
unique design requirements of Asia-Pacific
customers and to design and develop printing
solutions for customers in Asia-Pacific and
around the world,” said Sean Carney, Director,
Design, Imaging and Printing Group, HP.
HP opens design center for printers in Singapore
F uji Xerox's printer and multifunction
business has traditionally concentrated
on devices aimed at mid-range and high-
end markets, but in a new move Fuji Xerox will
focus more on the home laser printer market.
James Henderson, Fuji Xerox President of
printer channels, said:"We are bringing high-end
technology to low-end products. We are bringing
the world's best technology to everyone."
However, he also acknowledged that the market
was very crowded, with Hewlett-Packard and
Samsung the leaders in the below $400 printer
market.
He added that he was confident about the self-
scanning LED (SLED) printhead that simplifies
the mechanism and saves space, as well as the
eco-toning technology his company would
introduce to customers.
The SLED is so much smaller than conventional
laser mechanisms that it frees up enough room
for an additional paper tray within the same
device outline.
Besides the SLED, Fuji Xerox has announced
that it will use its EA-Eco toner technology in its
new laser printer lines. This technology reduces
carbon dioxide emissions during manufacturing
and use, and requires less toner powder in
printing.
Fuji Xerox has released some lower-end models
such as the WorkCentre 3119 and the Phaser
3155, and it wants to invest in this market.
Henderson said key features for the segment
include ease of use, plug-and-play operation and
networking capabilities. Fuji Xerox will compete
on price as well as product.
He also mentioned that the overall laser printer
market was around eight million printers, with
70-80 per cent in small businesses and SOHO. He
explained that despite the fierce competition, Fuji
Xerox was confident about its new technology as
well as its 50-year-old direct sales and six-year-old
channel sales systems.
According to Fuji Xerox, the company will
release six new models of full-color digital
multifunction device for office use on January 17,
2011: three models in the ApeosPort-IV series and
three models in the DocuCentre-IV series.
Fuji Xerox to enter home laser printer market
▲ James Henderson, Fuji Xerox President of printer channels.
OEM NewsRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 17
O KI establishes printer
sales office in RussiaOKI Data Corporation has established
a sales office in Russia. The company plans to
enhance its presence in the region by reinforcing its
relationship with business partners and customers
and in turn, strengthen its position in the Russian
printer market in fiscal year 2011.
The new Russian sales office will provide
competitive products, focus on delivering high
quality customer service and after-sales care,
developing stronger business relationships and
expanding its distribution channel.
Harushige Sugimoto, president of OKI, says:
"The new Russian sales office represents a great
opportunity to increase our presence in this
important market. By offering excellent customer
service and tailored solutions for businesses we can
continue to demonstrate OKI's commitment to our
customers whilst expanding our business in the
emerging market."
The company plans to achieve further expansion
by enhancing its unique service offerings such as
managed print services as well as support programs
for dealers and partners, targeting not only existing
sectors but also corporate and government markets.
Dell expands China operationsDell will establish its second operations base in
China's Sichuan province. The site, West Chengdu
High-Tech Park, will run manufacturing, sales and
services operations to complement Dell's robust
growth in the western Chinese market.
Additionally, Dell will hire 500 new staff when it
opens an accompanying office at its flagship Xiamen
base later this year. China is massive to Dell, coming
second only to the US in terms of its revenue.
Between 2000 and 2010, revenues increased 11-fold,
with a report in the last fiscal quarter showing that in
China sales grew by 52% year-on-year.
"We're planning for the future, and we're excited
about our strategic investments in China that will
help us better serve the region's increasing need for
technology solutions and services," said Michael Dell,
chairman and chief executive officer.
HP projects expansion in PhilippinesHP and the Republic of the Philippines have
signed a letter of intent to explore ways to expand
HP ’ s presence and
investments in this
significant, fast-growing
emerging market.
HP executives hosted
President Aquino III
along with his senior
government leaders for
a tour of its Cupertino,
Californina offices during
the President’s US visit.
"As a global company operating in more than
170 countries, HP seeks to increase its long-term
investments in strong emerging markets such as
the Philippines to support its continued growth in
products and services in the Asia Pacific region,"
said Francesco Serafini, executive vice president,
Emerging Markets, HP. "The Republic of the
Philippines has a vibrant economy with an educated
workforce."
HP, which has maintained a services operation in
the Philippines since 1994, is interested in expanding
this alliance to take advantage of the country’s
strategic location in the Asia Pacific region, its skilled
workforce, and its top-ranked academic and research
institutions.
The Philippine government expects to benefit
from HP’s proposed additional investment in the
global hub as well as the additional employment
opportunities.
OEM expansion plans for 2011
C anon India has made a foray into
the retail space with the launch of
its exclusive brand retail store called
Canon Image Square.
The company plans to roll out five such
stores by December 2010 and 300 stores in the
next three years.
The retail store covers an area of approximately
1,450 sq. ft. and is based on the franchise model.
It aims to be a one-stop destination for people
with imaging needs that affords the company
increased visibility and reach across the country
with a view to boosting sales.
Mr Kensaku Konishi, President and CEO,
Canon India, said, "The first retail store
launched aims at providing our customers with
a one-stop shop for their digital needs that
will result in satisfied and stronger customer
base, thus helping our business substantially.
We have had record growth of 50% in 2010
and expect to close the year at Rs 1,260 crore.
In three years, the new brand retail business
division will contribute 20% of our revenues.”
Canon India has also introduced a new
division called the Brand Retail Business
Division. The division will be responsible
for creating a network of franchises and
maintaining a harmonious, consistent and
contemporary look and feel in all stores. At
present, the division employs about 12 people.
Canon India launches exclusive brand store
FeaturesRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn18
The economic conditions continued to improve broadly throughout
the world. Consumer spending showed signs of recovery thanks to the
effects of such efforts as economic stimulus measures. In the United
States, consumer spending grew steadily despite the unemployment rate
remaining at a relatively high level and other concerns. Europe recorded
growth in exports; the pace of economic recovery remained modest
as financial concerns within the region were not fully eased. The Asian
economies, such as China and India, along with other emerging countries,
recorded stable expansion. The install base and value of worldwide
hardcopy peripherals market is growing.
Recycling Times conducted two lots of market research in 2010, both
of which show that the growth of aftermarket printer supplies industry
is flourishing. Emerging markets are also showing strength for further
development. As well as Western Europe and North America, the markets
of Russia, Kazakhstan, Ukraine, Brazil and India were covered during the
analysis of the markets around the world.
With the rosy picture of the industry, 2010 still witnessed several major
patent infringement lawsuits this year. The first patent infringement case
about toner cartridges was filed on June 28, 2010 when Canon Canon
Inc., Canon U.S.A., Inc. and Canon Virginia, Inc. (collectively, “Canon"
filed a complaint requesting that the USITC (United States International
Trade Commission) commence an investigation pursuant to Section 337,
claiming that Ninestar, its affiliates and a number of American resellers
infringed two of Canon’s patents for laser printer cartridges. Canon also
filed a lawsuit against the same defendants in the District Court for the
Southern District of New York on the same day.
On August 20, 2010, Lexmark International Inc. filed a complaint with the
USITC against 24 manufacturers, importers, distributors and retailers of
replacement toner cartridges, claiming they infringed 21 US patents held
by Lexmark.
Market players in China are adjusting their strategy and circumvent
potential harm of patent infringement.
Another hot topic of the year is acquisition. OEMs often have acquisition
plans on their agenda, while this year aftermarket companies also saw
many successful acquisitions. Clover Technologies Group Inc acquired NER
Imaging Supplies division and its wholly owned printer parts subsidiary
Image1 at the end of last year. In April, Print-Rite officially announced
that it had acquired a major controlling stake in Shanghai based AEG
Photoconductor Co. Ltd (APS) from its German parent company AEG
Elekrofotografie GmbH. Also in April, Media Sciences International Inc.
acquired Master Ink Company, Ltd., a China-based manufacturer of toner
cartridges, inkjet printer cartridges, inkjet refill kits and patented next
generation automatic ink refill systems. All of the assets and subsidies of
Master Ink were bought. The majority ownership of industry titans Clover
Technologies Group and West Point Products transferred to Golden Gate
Capital in June.
We also saw several companies going public this year. Hubei Dinglong
and Shangdong New Beiyang were listed in the Second Board of China’s
stock market. This is definitely good new for many companies in the
aftermarket printer supplies industry that want to use public funding for
R&D or their future plans. Bio-toner also cause some heated discussions
during the year.
Recycling Times would like to review some major events in the industry
during 2010 in this issue.
2010: A year in review2010 has been an eventfully year. In terms of the factors of MPS, rising competitiveness of China’s remanufacturing industry and economic recovery, the industry is thriving. The printer vendors are feeling the challenges posed by aftermarket printer supplies industry. There were also changes of the restructuring of OEM scenario. Several lawsuits were brought against aftermarket players this year by the OEMs in order to safeguard their “territory”. How to circumvent the OEMs’ patents and seize a bigger market share of the market is on the table of every aftermarket player’s agenda.
FeaturesRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 19
Stock market
Hubei Dinglong Chemical becomes listed companyHubei Dinglong Chemical Co., Ltd. (Dinglong Chemical) has reached
surged limit several times since it was listed on the Second Board of
Chinese Stock market. On February 11, Dinglong Chemical was listed on
the Shenzhen stock exchange. The stock code is 300054, with the price
set at 30.55 (RMB) per share. On the first day of listing, the share price
is up 8.3%. Dinglong Chemical’s share price has been up for more than
80% since then. The company issued 15,000,000 shares, accounting for
25% of its total shares. (Industry Updates Issue 1)
Suzhou Goldengreen Technologies IPO haltedThe initial public offering (IPO) of Suzhou Goldengreen Technologies
Ltd. (SGT) was stopped at the Second Board level in China’s stock
market. SGT was expecting to be listed on March 17. This contradicts
an announcement made on Jan.22, where China Securities Regulatory
Commission said that Suzhou Goldengreen Technologies Ltd. (SGT)
was approved for IPO on the Second Board in China’s stock market.
On February 24, the State Intellectual Property Office announced on
its website that four patents concerning OPCs were all expired. The
expiration of patents was due to the fact that “The annual fee is not paid
as prescribed”. (Industry Updates Issue 1)
Shangdong New Beiyang listed on China
stock marketOn March 23, Shandong NQew Beiyang Information Technology Co.,
Ltd. (SNBC) was listed on China stock market. It started its initial public
offering (IPO) on March 3. SNBC issues 38 million A shares. As of the
date of 23, the share price of SNBC closed at 36.52 Yuan, and the share
price had been increase for more than 60%. And it is still looking up.
The raised funds will be pooled into two projects: a Special Printers
and Related Products Production Base Construction Project (Annual
Output of 500,000 Units) and an R&D Expansion Project. SNBC is a
leading manufacturer of thermal print heads, printers, and printer
mechanisms for POS, kiosk and label printing applications. (Industry
Updates Issue 1)
Media Sciences delisted from NASDAQMedia Sciences International, Inc. announced that its common
stock would be delisted from the NASDAQ Stock Market and trading
of the Company's common stock wil l be suspended from the
NASDAQ Capital Market effective July 22, 2010. The Company's stock
is being delisted because the stock's bid price is trading under the
$1.00 per share minimum bid price requirement set forth in NASDAQ
Marketplace Rule 5550(a)(2). Its common stock was quoted on the
Pink Sheets later.
Mergers and acquisitions
Print-Rite to acquire major stake in AEG Print-Rite Photoconductor Company Limited (Print-Rite) and AEG
Elektrofotografie GmbH (AEG) reached an agreement where Print-
Rite would acquire a major controlling stake in AEG Photoconductor
(Shanghai) Co. Ltd. (APS) in December 2010.
NER sells Imaging Supplies division to CloverNER Data Products, Inc. announced the sale of the NER Imaging
Supplies division and its wholly owned printer parts subsidiary Image1
to Clover Technologies Group Inc. in last December. The agreement
would transfer all imaging activities including compatible laser toner,
inkjet, narrow and wide impact ribbon production, and printer parts to
Clover.
Print-Rite announces acquisition of APSPrint-Rite officially on April 1 announced that it had acquired a major
controlling stake in Shanghai based AEG Photoconductor Co. Ltd (APS)
from its German parent company AEG Elekrofotografie GmbH. All
companies agreed not to disclose any further information. Following
this acquisition, Print-Rite “shall be the only printing consumables
manufacturer who possesses the production capabilities of all major
components and parts in laser toner cartridges. This transaction brings
a whole new competitive edge to Print-Rite as it is now able to have
control of the complete production process of laser toner cartridges.”
(Industry Updates Issue 2)
Media Sciences acquires Master Ink in ChinaMedia Sciences International, Inc. entered into agreements to acquire
Master Ink Company, Ltd. in late April, a China based manufacturer of
toner cartridges, inkjet printer cartridges, inkjet refill kits and patented,
next generation automatic ink refill systems.
Industry updates
FeaturesRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn20
Consideration for the acquisition includes $1.15 million in cash
($250,000 due at closing, the balance with accrued interest due on
the second anniversary of the closing), a 10% override on Master Ink
revenues until the note is repaid and one million shares of Media
Sciences International common stock. (Industry Updates Issue 2)
Golden Gate Acquires Clover Technologies
and West Point ProductsThe majority ownership of Clover Technologies Group and West Point
Products transferred to Golden Gate Capital in June, a private equity investment
firm with approximately $8.0 billion of capital. Both Clover Technologies
Group and West Point Products’ management teams remain in control of their
respective companies and have ongoing resources to improve their reach into
their respective market channels. This venture and potential future acquisitions
signal a maturation of the imaging supplies aftermarket industry that could
mean more consolidation as this market continues to evolve.
Future Graphics merged into parent companyFuture Graphics Imaging Corporation merged into its parent
corporation, Mitsubishi Kagaku Imaging Corporation in July. They also
launched a new website www.fgimaging.com. According to the company,
the website will make customers’ searches for high quality matched
systems much easier.
Armor acquires Wecare4The Armor Group signed an agreement for the acquisition of Wecare4
in May, a European leader in the collection, manufacture and sales of
remanufactured inkjet cartridges.
Wecare4’s acquisition strengthens Armor’s commitment in sustainable
development. Wecare4 have become one of the very rare players
possessing mastery of the industrial process for all three key ranges of
the new generation consumables market: laser, new-built inkjet and
remanufactured inkjet cartridges. (Industry Updates Issue 3)
Clover Holdings acquisition of ERSClover Holdings Inc. announced the acquisition of Environmental
Reclamation Services (ERS) in mid-November. This acquisition
advances Clover’s strategy to be the leader in environmental solutions
and supports the diversification and growth of its collection programs
including laser and inkjet cartridges, cell phones and small electronics.
Germany KMP acquires Intercopy Holding As of 25 October 2010, German KMP PrintTechnik AG has acquired
100% of Intercopy Holding GmbH in Schwalbach am Taunus/
Germany that sells consumables for copiers and multifunctional
printers. This holding consists of Parts Depot GmbH in Germany,
Copymix s.a.r.l. in France and Portugal as well as the manufacturing
company Tekloq s.a.r.l. in Creutzwald France. KMP is now able to
supply customers in France and Portugal through the Copymix
logistics center near Paris. The total turnover of the new company
group is approx. 80 Million Euro.
FeaturesRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn22
OEM updatesFinancial status
HPIn March, HP stated that it has revised its previously announced
financial results for its first fiscal quarter ended Jan. 31, 2010, following
developments in litigation involving Electronic Data Systems Corporation
(EDS), a company that HP acquired in August 2008. The revisions reflect an
increase in the amount of the contingency reserve previously established
in connection with the litigation and resulted in a negative impact on HP's
first quarter net earnings of approximately $73 million, or $0.03 per diluted
share. The IPG group revenue was $6.2B, up 4% year-on-year. Supplies
revenue was up 1% over the previous year and up 4% in constant currency
while Commercial printer hardware units up 11% and Consumer printer
hardware units up 18% respectively. Total printer hardware units shipment
increased by 16%, with Color LaserJet units down 1% and Printer-based
MFP units up 6%.
HP’s second fiscal quarter ended April 30, 2010 were announced in May,
with net revenue of $30.8 billion, up 13% from a year earlier including a
favorable currency benefit of four percentage points. Imaging and Printing
Group (IPG) revenue increased 8% to $6.4 billion. Supplies revenue was
up 6%, while Commercial hardware revenue and Consumer hardware
revenue increased 13% and 16%, respectively. Printer unit shipments
increased 9%, with Commercial printer hardware units down 8% and
Consumer printer hardware units up 15%.
XeroxXerox announced today first-quarter 2010 results that include adjusted
earnings per share of 18 cents and $375 million in operating cash flow.
Total first-quarter revenue of $4.7 billion was up 33% including a 3 point
currency benefit. On a pro-forma basis, with ACS in the company’s
2009 results, total revenue grew 5%. Revenue from technology, which
represents the sale of document systems as well as the supplies, technical
service and financing of products, was up 6% including a 3 point currency
benefit. Total install activity for Xerox equipment was up 17%. Revenue
from services grew 3% on a pro-forma basis, including a 1 point currency
benefit, and represents the company’s business process, IT and document
outsourcing offerings.
Xerox Corporation announced second-quarter 2010 results that include
adjusted earnings per share of 24 cents and $678 million in operating cash
flow. The technology segment saw a double-digit install growth in all Color
segments. Also in second quarter, there were 10 products launched in key
segments. The total revenue of the technology segment is $2,555 million.
Revenue from technology represents the sale of document systems as well
as the supplies, technical service and financing of products, and was up 3%
or 4% in constant currency. Xerox says that sales of entry-level printers and
MFPs were up 56% in the second quarter.
CanonThe company earned net profits of ¥56.8bn (US$611m) and January-
March net profit rose 220.2% on-year, largely thanks to a recovery in
demand for printers and digital cameras. While sales volume of the Office
Business Unit of color network digital MFDs increased in major regions
boosted by the introduction of new products and the recovery in demand,
sales volume for laser printers, which suffered flagging sales in the previous
year largely due to an inventory issues, more than doubled, resulting in a
substantial increase of 131%. Consequently, sales for the segment totaled
¥409.1 billion (US $4,399 million), an increase of 8.0% year on year, and
operating profit increased 50.5% to ¥72.1 billion (US $775 million).
April-June net profit rose 333.4% on-year to 67.6 billion yen (778 million
dollars), beating estimates. The first half posted more than triple the net
profit of the same period last year. Net income in the first six months was
up 273.2% at 124.4 billion yen. Despite the significant effects of the strong
yen, second-quarter sales for the Office Business Unit segment totaled
¥521.9 billion (US $5,931 million), growing 31.3% year on year, and ¥931.1
billion (US $10,580 million) for the six months ended June 30, 2010, an
increase of 19.9%. (Market Data Issue 6)
LexmarkLexmark’s first quarter revenue of $1.04 billion increased 10% compared
to the same quarter last year. First quarter revenue declined 3% sequentially
from the fourth quarter of 2009. Gross profit margin was 36.9% versus
35.3% in 2009. Operating expense was $251 million compared to $259
million last year. Operating expense to revenue ratio was 24.1% compared
to 27.4% last year. Operating income margin of 12.8% includes $15 million
pretax for restructuring-related activities. Operating income margin in 2009
of 7.9% included $13 million for pretax restructuring-related activities. Net
earnings for the quarter were $95 million, an increase of 61% compared to
first quarter 2009 net earnings of $59 million.
FeaturesRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 23
Lexmark announced financial results for the second quarter of 2010
in July. Second quarter GAAP revenue of $1.03 billion increased 14%
compared to the same quarter last year. Second quarter Printing Solutions
and Services Division (PSSD) revenue of $752 million grew 20% year to
year, Imaging Solutions Division (ISD) revenue of $275 million declined 2%
year to year. (Market Data Issue 6)
Eastman KodakEastman Kodak reported first-quarter earnings from continuing
operations of $119 million in April, or $0.40 per share on a diluted basis,
on sales of $1.933 billion. This represents a $479 million year-over-year
earnings improvement and reflects a previously announced intellectual
property transaction and significantly improved operating results across all
of the company’s key business segments.
Eastman Kodakreported second-quarter results that reflect continued
acceleration of the company’s major growth businesses in commercial and
consumer inkjet, unit growth in the company’s largest digital businesses,
the continued decline of its traditional business, and operational
improvements. Revenue from the company’s digital commercial printing
businesses grew 9% in the second quarter, including 18% growth in
commercial inkjet printing. Consumer inkjet printer and ink revenue grew
by 50% in the second quarter. (Market Data Issue 6)
Mergers and acquisitions
Xerox acquires IBSXerox announced the acquisition of Irish Business Systems (IBS) for
approximately $31 million (€ 21m) in January 20, 2010, expanding Xerox’s
reach right across Ireland. IBS, with eight offices, is a managed print
services provider and the largest independent supplier of digital imaging
and printing solutions in Ireland. This acquisition would increase the
number of people selling Xerox solutions and gain access to more than
11,000 customers across Ireland.
Canon acquires Océ Canon Inc. (trading symbol CAJ) announced a public cash offer for all the
shares of Océ (trading symbol OCE). Canon intends to make an offer of €
8.60 per Share (cum dividend) for 100% of the outstanding Shares of Océ,
representing a premium of 70% over Océ’s closing share price of Friday
13 November 2009 and 137% to the average share price over the last 12
months, this makes the deal worth about 1.1 billion dollars.
Canon buys Tereck Office Solutions Canon U.S.A. acquired the assets of Tereck Office Solutions in May.
Tereck a provider and servicer of copiers, printers and fax machines,
became a wholly owned subsidiary of Canon U.S.A and operate as Canon
Business Solutions -Tereck Inc.
Lexmark acquires Perceptive Software for $280 millionLexmark International Inc. announced buying enterprise content
management software company Perceptive Software Inc. for $280 million
in cash in May. This deal logically extends Lexmark's long-term strategy
of building a portfolio of solutions beyond hardware. (Around the World
Issue 42 Recycling Times-Chinese)
InfoPrint becomes wholly owned subsidiary of RicohInfoPrint Solutions Company announced on the first day of July that it
became a wholly owned subsidiary of Ricoh Company, Ltd., bringing the
three-year joint venture between IBM and Ricoh to its planned completion.
InfoPrint Solutions works for enterprises and print-for-pay customers to
increase revenue and reduce costs within highly complex, digital print
environments.
HP acquires PalmIn July, HP completed its acquisition of Palm Inc. at a price of $5.70 per
share of Palm common stock in cash. The combination gives HP significant
headway into one of technology’s fastest-growth segments with Palm’s
innovative webOS platform and family of smartphones, plus a rich portfolio
of intellectual property from the smartphone pioneer.
Fuji Xerox buys Upstream Print SolutionsFuji Xerox has bought out Australian managed printing services company
Upstream Print Solutions for an undisclosed sum. Upstream would operate
as an autonomous subsidiary of Fuji Xerox Australia and would continue to
focus on managed print solutions in the small to medium business market.
HP buys Fortify SoftwareHP acquired Fortify Software, a privately held software security
assurance company based in San Mateo, California. Terms of the deal
were not disclosed. With the acquisition of Fortify, HP will be able to
accelerate development of this technology to give clients the accuracy and
prioritization they need around security vulnerabilities to build scalable
enterprise application security programs. (OEM News Issue 6 Recycling
Times)
Global Imaging Systems acquires
Georgia Duplicating ProductsGlobal Imaging Systems, a Xerox company, has acquired Georgia
Duplicating Products. The acquisition furthers Global’s strategy of supporting
business customers across the country with an expanding network of office
technology providers. (OEM News Issue 7 Recycling Times)
FeaturesRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn24
Market analysisPrinters
India printer industry beating the downturnAccording to International Data Corporation (IDC), the Indian
printer market saw 17.8 lakh units ship (5.5 lakh inkjet AIOs, 4.5 lakh
inkjet SFPs and 7.8 lakh laser printers) during Q3 2009. The current
growth rate is 20% and the market is expected to continue growing at
20% except for inkjet single function devices in Q4, 2009. Major OEMs
in India said Indian market experienced a healthy growth rate despite
the recession and hopes to continue this growth momentum in 2010
as well.
Worldwide hardcopy peripherals market returned
to year-on-year growth in Q4, 2009The worldwide hardcopy peripherals market grew 3.6% year over
year with 34 million units shipped in the fourth quarter of 2009 (4Q09),
according to the International Data Corporation (IDC) Worldwide
Quarterly Hardcopy Peripherals Tracker released in March 2010. Driven
by the continued popularity of multifunction printers (MFPs), this
represents the first year-over-year gain in the market since the second
quarter of 2008. Although shipment values declined 4.6% year over
year to $14.3 billion in 4Q09, this was the slowest rate of decline since
3Q08. (Industry Focus Issue 39 Recycling Times-Chinese)
Inkjet printers market in Russia in 2006-2009Before the global economy fell into trouble due to the financial
crisis, Russia had experienced stable growth in terms of shipments of
new printers and sales of printing supplies for both laser and inkjet
segments. But the growth spree ended in 2008, when the first signs of
the impending crisis loomed. . The shipments in 2008 amounted to 4.5
million printers (laser and inkjet), which is -18% as compared to 2007.
In 2009 (3 more weeks to go to the year's end as of the date of the last
review of the study) the total number of shipped printers (laser and
inkjets) in the country fell abruptly to 3.3 million units, which is -27%
as compared with 2008. (Industry Focus Issue 37 Recycling Times-
Chinese)
The market of printing devices in KazakhstanKazakhstan's market of printing devices used to show great results
before 2008, when the growth rate would be in double digits on year-
to-year basis. In 2008-2009 the market of printing devices (inkjet
and laser stand-alone printers and MFPs) experienced difficulties
because of the financial crisis like everywhere else in the world. In
2006 over 280 000 printers (inkjet/laser printers and MFPs both color
and monochrome) were sold in the country. In 2007 the number of
sold printing devices skyrocketed to over 450K units. In 2008 the
sales rolled down to 248 000 and continued skidding downhill to 204
000 units sold in 2009 (data as of December 2009). Kazakhstan has a
very dynamic market of printer devices with good potential. The local
market, as any other market in Eastern Europe and Central Asia, is
prone to economic fluctuations at a higher extent than, say, in Central
and Western Europe. The printing culture is not mature enough
to keep the demand stable and growing. (Industry Focus Issue 39
Recycling Times-Chinese)
EMEA hardcopy peripherals market to stabilize
through 2010The hardcopy peripherals (HCP) market in EMEA continues to
stabilize and recover in the wake of the widespread negative growth
experienced throughout 2009 as a direct result of the world's first truly
global recession. Looking forward, total HCP shipment volume in the
EMEA region is set to increase by a brisk 7.6% CAGR over the long-
range forecast period (2010-2014). However, this relatively high growth
rate must be seen in the context of an HCP market recovering from
last year's low base of activity when overall HCP shipments contracted
15.1% from the 2008 market peak. IDC forecasts that shipment volume
FeaturesRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 25
in EMEA will not reach 2008 levels until 2011, when the market is
expected to total 46.8 million units. (Industry Focus Issue 39 Recycling
Times-Chinese)
Worldwide hardcopy peripherals market sees
year-on-year growth in both units and
shipment value in Q1, 2010The worldwide hardcopy peripherals market grew 9.1% year over
year with 28.7 million units shipped in the first quarter of 2010 (1Q10),
according to the International Data Corporation (IDC) Worldwide
Quarterly Hardcopy Peripherals Tracker. This is the second consecutive
quarter of year-over-year unit growth and the first quarter since early
2008 where hardcopy peripherals shipment value ($13.8 billion) has
also experienced year-over-year growth (7%). (Market Data Issue 4
Recycling Times)
Worldwide hardcopy peripherals market sees
year-on-year growth in both units and
shipment value in Q2, 2010The worldwide hardcopy peripherals market experienced double-
digit growth in both units and shipment value in the second quarter
of 2010. According to the International Data Corporation (IDC)
Worldwide Quarterly Hardcopy Peripherals Tracker, the total market
grew 20% year over year in 2Q10 to 29 million units while shipment
value increased 14% year over year to $13.3 billion. This is the third
consecutive quarter of year-over-year unit growth and the first double-
digit growth for both units and shipment value since early 2000. (Market
Data Issue 7 Recycling Times)
Sizing the worldwide peripherals market:
$149 billion in 2010In total the market will be worth some $149 billion in 2010. Growth
rates have shown the “saxophone shaped” recovery typical of almost
all markets in the recent recession. Figure 1 shows a comparison for
the period from 2008 by quarter, complete with a forecast for the rest
of 2010. At the moment we believe there will be a 3% growth from the
$145 billion spending in 2009. The MPS market-though worth just $7
billion-is almost unique in being a countervailing IT business in the
recession. (Market Data Issue 6 Recycling Times)
US printer import and export by country in 2010Sales of inkjet photo printers jumped 27.5% during the first 6
months of 2010, with America importing far more inkjet printers than
it exports. U.S. sales of inkjet printers were up for 9 of America’s top
10 trade partners that import inkjet printers. China, Japan and Vietnam
make almost 95% of imported laser printers, while Mexico is the largest
export market for U.S. laser printers as of June 2010. (Market Data
Issue 7 Recycling Times)
Printer sales in Taiwan reach 89,528 units in Q2,
2010Sales of SFPs (single-function printers) in Taiwan reached 89,528
units in the second quarter, both a positive year-on-year ( YoY ) and
quarter-on-quarter (QoQ) increase, according to the IDC Taiwan
Quarterly SFP and MFP Tracker report. Shipments of inkjet MFPs
(multifunctional printers) during the period were 178,874 units, both
a two-digit QoQ and YoY increase. (Industry Updates Issue 7 Recycling
Times)
The future of office documentsA series of shif ts has taken place within the office equipment
market. The market is moving from single-function devices to
multifunctionality, from A3 to A4, and from black & white to color.
Color is very attractive as a communication tool, and speed/quality
improvements have been paired with decreasing acquisition costs.
At the same time, however, color adoption has been slow in many
businesses. Over 30% of total survey participants report that their
companies are slowly increasing their color use, but they remain
concerned with cost and speed penalties. Nearly as many respondents
report that color is strongly controlled within their organizations.
Although the acquisition costs for color devices have come down,
some lingering concerns remain. Furthermore, over half of all
respondents believe that supplies costs for color devices are too high.
These issues will likely need to be resolved before more businesses
fully embrace color. (Market Data Issue 7 Recycling Times)
Aftermarket printer supplies market
The Spanish remanufacturing industry (2009-2009)Spanish remanufacturers have adapted in different ways. There
was already a trend among small remanufacturers ("Mom and Pop
companies) to give up cartridge production and focus on selling and
distributing not only cartridges, but office products in general. This
FeaturesRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn26
trend has only increased during the second half of 2008. From around
800 companies actively remanufacturing five years ago, at least 150
have turned into dealers or retailers and nearly 100 have disappeared.
2009 is going to be a watershed year. In Spain remanufactured
cartridges market share is still around 10%-15%, so there is still a
lot of room for growth. Remanufactured color cartridges do not
represent more than 8% of all remanufactured cartridges. Only those
companies willing to produce quality products and a good marketing
plan, highlighting the environmental and economic benefits of
remanufactured cartridges will be able to turn this time of crisis into
a profitable opportunity. (Industry Focus Issue 37 Recycling Times-
Chinese)
Inkjet printer supplies market in Russia in 2006-
2009In Russia, the peak period of printer supplies rested on 2008,
when the local economy was still in a good shape. A slight slide was
observed in 2009, when the first signs of economic instability loomed.
Despite the falling sales for printers, the sales of non-original ink
printing supplies were just a fraction lower than in 2008, the reasoning
for it being corporate customers' active switch from original supplies
to alternative ones. In 2010 the slide might continue as the country
will be struggling with the fluctuating economy for a number of years
to come. But we do not expect the fall to continue beyond 2012. Due
to the growing ink-based printers' base, sales of ink supplies will be
hovering within the 14-15 million ranges per year. (Industry Focus
Issue 39 Recycling Times-Chinese)
The cartridge remanufacturing industry in BrazilBrazil has a giant cartridge remanufacturing industry, encompassing
more than 10,000 formally registered companies within the printer
and cartridge sector (there is no specif ic sector for cartridge
remanufacturing under Brazilian working laws, at least not yet).
This sector directly employs nearly 100,000 people who are getting
organized in terms of creating new syndicates, and getting more
engagement from the sector’s businessmen. The Brazilian industry is
expected to regain the growth rate experienced before the crisis which
hovered around 25-30%. (Industry Focus Issue 40 Recycling Times-
Chinese)
Cartridge remanufacturing growth in IndiaAccording to estimates, the Indian cartridge market is estimated
around Rs 1,400 crore annually, growing at 30%. Off which nearly
35% is contributed by alternative supplies like compatibles and
remanufactured products. Unfortunately, a large chunk of this is
contributed by counterfeiters and low-quality compatibles. Genuine
remanufactured brands contribute less than 10%. Re-manufacturers
would be compelled to adopt the best practices which will work
towards eradicating unscrupulous operators. (Industry Focus Issue 40
Recycling Times-Chinese)
Ukraine's printer supplies market on the riseBeing one of the largest markets in Eastern Europe, Ukraine's market
of printers and printing supplies follows closely Russia's positive and
negative growth patterns. Ukraine accounts for 70% of hardware,
20% of supplies and only 10% of service. With such a high ratio of the
devices segment it goes without saying that any slight fluctuation of
the economic stability gets this market to fall. These changes in the
local consumer's behaviour resulted in the 6% growth of the Ukrainian
market of printing supplies in terms of units in 2009 as compared
to 2008 (according to IDC). But the value of the market fell to $153
million, which is by 34% lower than in 2008. This tells again about the
high level of price sensitivity with the local consumer in the difficult
economic conditions. (Industry Focus Issue 42 Recycling Times-
Chinese)
Market analysis of Continuous Ink Supply Systems
in RussiaThe analysis of the market of Continuous Ink Supply Systems (CISS)
targeted CISS for use in inkjet printers, covering small formats (A4 &
A3) office and home printers as well as large format devices (above
A3). The Russia CISS market reached 0.203 million in 2009. In this
same 2009, the market of inkjet printers grew and is believed to have
reached 11 million units. With the worsening economic conditions
in the region due to the financial difficulties, local consumers started
exploring less expensive solutions. The devaluation of the ruble made
original cartridges less affordable to consumers; more people thus
sought to print less or use non-original consumables. (Contributors
Issue 43 Recycling Times-Chinese)
Laser cartridges OEM vs. aftermarket trends in
imaging supplies-Western Europe and US marketsFor years, the competition between OEM and aftermarket laser
supplies has been relatively stable. For example, the aftermarket has
FeaturesRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 27
had rough 33% of the market for cartridges used in monochrome HP
LaserJet printers for about 10 years. Lately, the OEM printer supplies
market has felt some challenges as the aftermarket has gained share
from several different causes including the recession, MPS and growing
competition from products made in China. Customers looking for ways
to cut costs and save money have looked to aftermarket alternatives
in the supplies market of which there can be a number of options, at
least for black and white printers. This article will consider the current
dynamics in the supplies market and how the aftermarket in the
United States and Western Europe can pursue and maintain customer
opportunities. (Market Data Issue 4 Recycling Times)
Forecast of the second half of 2010 China printer
suppliesRecycling Times interviewed 100 companies in China to take a
snapshot of the aftermarket printer supplies industry in China.
The economic recovery and the increasing shipment of worldwide
hardcopy peripherals suggest a flourishing printer supplies market.
From January to April, the printer consumables market in China
thrived, especially for toner and toner related products. Of the 42
companies, 66.7% of them answered that their sales volume has
grown. And the average growth is 26.9% over the same period of last
year. 30.7% had a flat result and only 2.6% of them sold fewer products
than 2009. (Market Data Issue 4 Recycling Times)
Inkjet cartridges OEM vs. Aftermarket trends in
imaging supplies-Western Europe and US marketsCompared with the laser aftermarket, the inkjet aftermarket operates
on a different dynamic due mainly to the differences in technology and
customer segments. Inkjet printers either use an integrated cartridge
or a tank format. In the US, integrated cartridges continue to make
up the majority of the market primarily due to the dominance of HP.
Lexmark supplies have seen a decline but
this has been offset by the growth in Dell
products. Tank-based cartridges represent
a larger share of the European market than
they do in the US due to the strength of
Epson and Canon. In addition, the emerging
brands of Brother and Kodak both use tank-
based systems. Newer Lexmark models are
switching to tanks and some HP printers also
use tanks. (Market Data Issue 6 Recycling
Times)
BRIC aftermarket printer supplies
markets evaluationI n t e r m s o f t h e i n s t a l l e d b a s e , t h e
combined BRIC region is about one-third
the size of the total U.S. market. At the same
time, however, InfoTrends is projecting
strong growth for the combined BRIC region, while the U.S. market is
expected to remain essentially flat. By the end of the forecast period,
the installed base in the BRIC region will amount to about 55% of the
total installed base in the U.S. market. China will represent almost
half of the BRIC installed base - by all measures, this is the largest of
the four BRIC countries. The BRIC counties are very much dominated
by black & white printing and are expected to remain so though the
forecast period. The installed base for black & white laser printers and
MFPs will account for the bulk of overall market growth. There are also
many inkjet devices in the installed base, but they are primarily used
for monochrome output. Ink refills are widely used to reduce the cost
of inkjet printing. The barrier of widespread use of color machines is
also analyzed. (Market Data Issue 8 Recycling Times)
Dynamics of finished products companies in
aftermarket printer supplies industryRecycling Times interviewed 208 companies during RemaxAsia Expo
2010 to see how the industry was going. In terms of the production
output of the past two years, we are happy to see that most companies
increased their production, especially the toner cartridge producers,
85.42% of whom raised their production while 10.42% companies
remained at the same level of production. 62.07% of the companies
that make inkjet cartridges and CISS products have witnessed an
increased production while 20.29% of them have seen neither growth
nor a drop in production scale. This survey shows that many finished
product companies are running well and the market is undergoing
some changes. For example, the mature markets such as North
America are pushing market players away by restrictions on legal issues
and are not as dynamic as before. Thriving markets such as Eastern
Europe, Russia and the Middle East are becoming the new focus for
many companies. (Features Issue 8 Recycling Times)
FeaturesRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 29
Legal issuesHP
Against MMC, Mipo et. alOn September 23, 2009, HP filed a complaint requesting that the USITC
commence an investigation pursuant to section 337 and cease and desist
orders to all respondents.
The patents in suit are US Patent Nos. 6,959,985; 7,104,630; 6,089,687;
and 6,264,301. The defendants are Zhuhai Gree Magneto-Electric Co., Ltd.,
InkPlusToner.com of Canoga Park, Mipo International Ltd., Mipo America,
Shanghai Angel Printer Supplies Co. Ltd., SmartOne, Shenzhen Print Media Co.,
Ltd., Comptree, Zhuhai National Resources & Jingjie Imaging Products Co., Ltd.,
Tatrix International and Ourway Image Co., Ltd. According to the complaint,
the asserted patents relate to specialized printing fluid containers. In particular,
the inventions relate to printing fluid containers that have enhanced alignment
and latching features, the ability to hold different volumes of ink, and the ability
to electronically communicate with the overall printing system regarding the
amount of ink remaining in the container.
As of March 18, 2009, HP announced that it had reached settlement
agreements with InkPlusToner, Comptree Ink, SmartOne Service and Zhuhai
Gree Magneto-Electric Co., Ltd. of China. The Administrative Law Judge has
entered default judgment against the remaining seven respondents.
On April 1, 2010, HP announced it has reached a settlement agreement with
Hong Kong based Print-Rite Holdings Ltd. relating to HP 02 inkjet cartridges.
Print-Rite acknowledges that HP’s patents are valid and in effect and agreed
to withdraw the products involved in the dispute from the United States and
other countries having corresponding patent filings. In March, HP settled
similar patent disputes with three other tech companies. HP is also working
to settle a number of other complaints
involving other companies that sell similar
types of inkjet cartridges.
On May 20, 2010, HP added an additional
defendant, Asia Pacific Microsystems Inc.
(APM) of Taiwan, an affiliated company
of Taiwan-based UMC Group to the suit.
The refiled case also adds Hewlett-Packard
Development Company, a subsidiary of HP,
as a plaintiff in the case.
Against Mipo et. alOn March 5, 2010, HP sued Mipo
Technology Limited of Hong Kong, Mipo
Science & Technology Co. Ltd. of China,
Mextec Group Inc. dba Mipo America Ltd.
of Florida, Sinotime Technologies Inc. dba
All Colors of Florida, and PTC Holdings
Limited of Hong Kong. HP alleged that the respondents have engaged in
violations of Section 337 through the unlicensed importation into the United
States, the sale for importation, and/or the sale within the United States after
importation of the accused products that infringe one or more claims of United
States Patent Nos. 6,234,598, 6,309,053, 6,398,347, 6,412,917, 6,481,817, and
6,402,279. HP sought a court order blocking infringement plus unspecified
damages.
Turbon vs HPOn June 9, 2010, Turbon International filed a complaint against HP in a
New York Manhattanfederal court that claims that HP committed fraud,
misappropriated trade secrets about Turbon’s collection of empties and
competed unfairly in its dealings with Turbon. Turbon is seeking both money
damages and injunctive relief.
Against Mipo et al.On June 25, 2010, Hewlett-Packard Company of Palo Alto, California and
Hewlett-Packard Development Company, L.P. of Houston, Texas filed a
complaint requesting that the USITC commence an investigation pursuant to
Section 337.
The complaint alleges that Mipo International Ltd. of Hong Kong; Mextec
Group Inc. d/b/a Mipo America Ltd.; Shanghai Angel Printer Supplies Co. Ltd.;
Shenzhen Print Media Co., Ltd.; Zhuhai National Resources & Jingjie Imaging
Products Co., Ltd., Tatrix International and Ourway Image Co., Ltd. have
engaged in violations of Section 337 through unlicensed importation into the
US, sale for importation, and/or sale within the US after importation of certain
inkjet ink supplies and components thereof that infringe one or more claims of
US Patent Nos. 6,959,985 (the ‘985 patent) and 7,104,630 (the ‘630 patent).
FeaturesRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn30
According to the complaint, both the ‘985 patent
and the ‘630 patent generally relate to printing-fluid
containers, such as ink cartridges.
Complainants allege that each of the Proposed
Respondents manufactures or purchases black and/
or color ink cartridges compatible with the “HP 02”
product line in China and sells such cartridges for
importation into the US According to the complaint,
the accused “HP 02” compatible cartridges infringe
several claims of both the ‘985 and ‘630 patents.
Canon
Canon takes on replacement toner
cartridgesOn June 28, 2010, Canon Inc., Canon USA, Inc. and
Canon Virginia, Inc. filed a complaint requesting that
the USITC commence an investigation pursuant to
Section 337.
Canon alleges infringement of certain claims of two of its US patents,
5,903,803 and 6,128,454 which both relate to a projection on photosensitive
toner cartridge drums that allow users, rather than technicians, to remove and
replace the drum. In the complaint, Canon separates the Respondents into
two categories. The first group is the so-called “Ninestar Respondents” which,
according to Canon, are all under common ownership and control. The second
group-the “Retailer Respondents”-allegedly infringe through sales of the toner
cartridges manufactured by the Ninestar Respondents. (Features Issue 5
Recycling Times)
Canon resolved with Polek and CopyliteOn July 26, 2010, USITC has voted to institute an investigation of certain toner
cartridges and components thereof. The products at issue in this investigation
are replaceable toner cartridges and components thereof, including
photosensitive drums.
Canon announced the resolution of a patent infringement lawsuit against
Polek & Polek Inc., concerning certain Polek & Polek's toner bottle products
and a patent infringement lawsuit against Copylite Products Corp. and Copylite
Products, LLC. ("Copylite"), concerning certain Copylite toner bottle products,
both sold for use in Canon copier and multifunction products (MFPs) on
September 17, 2010.
Lexmark against 24 companiesOn August 20, 2010, Lexmark International Inc. filled complaint with the
USITC against 24 manufacturers, importers, distributor and retailers of
replacement toner cartridge, claiming they infringed 21 US patents held by
Lexmark. The complaint named defendants such as Ink Technologies, Ninestar
Image, Seine Image, Ziprint Image, Inkjet Superstore, Ink Master, Virtual
Imaging, Jahwa, and Print-Rite and so on.
Lexmark requests the USITC to issue a permanent general exclusion order,
or in the alternative, a limited exclusion order forbidding entry into the United
States of all toner cartridges infringing the Asserted Patents, and a permanent
cease-and-desist order directed to each Respondent.
Lexmark also filed a patent-infringement complaint in the US District Court
for the Southern District of Ohio against the same defendants. The District
Court complaint contains allegations similar to those in the USITC complaint
and seeks injunctive relief, monetary damages and attorneys’ fees.
OEM vs Aftermarket: report from the front lineTo offer our readers a better general idea about the recent patent disputes
between OEMs and the aftermarket industry, we specially worked out this
summary of recent OEM legal activities against aftermarket manufacturers
regarding patents and a summary of successful defenses against OEM patent
suits. (Features Issue 7 Recycling Times)
Samsung against TNIRPSamsung took legal action against South Korean chip manufacturer TNIRP
accusing it of violating patents with its compatible smart chips and resetting
devices. Now TNIRP is proceeding with invalidity action for the patent itself and
at the same time, preparing data to refute the patent.
Epson resolved with Medea Epson reached an agreement with Medea International over a long running
inkjet cartridge patent infringement case, concerning two patents in the
lawsuit. Medea International “agreed to withdraw the products from sale
and pay an undisclosed sum towards Epson’s claim for substantial damages
and legal costs” in an agreement effective on October 18, 2010. However, the
Managing Director of Medea, Yusuf Okhai has made a statement that “"It is
absolutely true, that we have decided not to challenge the validity and that we
will withdraw the Epson compatible products. We have not ever admitted any
infringement.” (Legal Issues Issue 8 Recycling Times)
FeaturesRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 31
Shows & Events
Summary
Remax@Paperworld 2010 Remax@Paperworld 2010 was held in hall 4.0 of the Messe Frankfurt for the
first Remax event that is being held in parallel with Paperworld. Paperworld is
welcoming 2,111 exhibitors from 66 countries.
ReIndia Expo 2010ReIndia Expo 2010 was held in Mumbai, India on Jan 29, 2010 in Bombay
Exhibition Centre (BEC). There were 36 exhibitors. It was estimated that 1500
visitors attended the event and most of them were from the industry in India.
ITEX 2010ITEX 2010, witnessing its tenth birthday, was hosted by Imaging Network,
a subsidy of Questex in Las Vegas Convention Center. There were more than
160 corporation exhibitors on the show, most of which were from America. It
is estimated that there were more than 2500 visitors during the two day show,
most of whom were dealers and distributors in America. Some of the visitors
were from Canada, Mexico and other South American countries.
CIFEX 2010: a complete successOn April 23 and 24, the North China Consumables Forum and Expo (CIFEX)
2010 was held in Hebei. The event welcomed 52 exhibitors, 983 visitors and
103 delegates. During the show, a productive round-table meeting discussed
the themes of increasing communication and avoiding hostile competition.
Toners Conference 2010From May 17 to May 19, the Toners Conference 2010 was held in Marina del
Ray Marriott Marina del Rey, California. The three-day conference focused on
toner and the toner cartridge industry. The latest technology, the emerging
markets and the developments and trends for the industry as a whole were the
key topics of the conference.
Reciclamais South American Expo 2010Reciclamais South American Expo 2010, which was hosted by ReciclaMais
Magazine. There were more than 80 companies exhibiting at the show.
RechargRussia Expo 2010RechargRussia Expo 2010 was held in Moscow on June 29-30. Over 60
companies and their partners from 9 countries took an active part in the
exhibition in 2010. China alone was represented by 35 companies, Russia
following with 12 companies. Germany, Turkey, Korea sent 3 companies each.
Over 2200 visits were registered during the 2 expo days.
World Expo 2010On July 14 and 15, 2010, World Expo 2010, held by Recharger Magazine, had
more than 110 exhibitors.
RechargExpo 2010From July 14 to 16, RechargExpo 2010 was held in Jakarta. The show drew
about 100 exhibitors from Indonesia, Singapore, China and other regions
around the world.
GRIGA 2010 unveils a new era for imaging industryThe charter meeting of Global Remanufacturing Industry General Assembly
(GRIGA) was lit-up by inspiring speeches and discussions executed by
representatives from businesses, trade associations and industry media from
the four corners of the world. This inaugural event signals a new era for the
imaging industry: one of international communication and collaboration.
GRIGA provided a new forum for delegates from international trade
associations, industry media and entrepreneurs of the world to join together
and discuss common issues faced by the industry as a whole.
RemaxAsia Expo 2010: reaching a new heightRemaxAsia Expo 2010, held from September 26 to 28 by CCPIT Zhuhai
Branch and Recycling Times Media Corporation, has concluded successfully.
The show saw unprecedented growth, with a show floor of 23,000 square
meters-a 51.2% increase in exhibition space over the previous year. The three-
day event welcomed 360 exhibitors from 18 countries and regions as well as
8,626 visitors from 81 countries and regions. This means since its debut in 2007,
RemaxAsia Expo has become the world’s largest trade event for the aftermarket
printer supplies industry.
2010 is coming to an end. I am sure most companies have ups and downs on the road. Any company aspiring to paint for itself a bright, prosperous future must
continually improve itself and surpass its previous efforts. What is your most rewarding plan for 2010? Wish you all a prosperous future in 2011!
Market DataRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 33
Altogether we received 98 surveys out of 98, of which 97 of
them were valid. Of these 97 visitors, 10 were from Eastern
Europe (Including Kazakhstan, Poland and Russia), while 15
were from South America (including Argentina, Brazil, Chile,
Mexico and Peru). Another 14 came from North America
(Canada and the USA). 26 of them came from Western
and Central Europe (including Britain, Germany, Italy, the
Netherlands, Spain and Switzerland). Another 14 of them
came from India. The other 18 came from Australia, Israel,
Japan, Nigeria, Palestine, South Africa, Thailand and, Tunisia
which we refer to in this article as “others” (all other regions
apart from China).
Since we handed out the questionnaire randomly at
the exhibition hall, the visitors can be seen as a sample
that represented the percentage of all the visitors at the
show. Figure 1 roughly shows the percentage of visitors of
RemaxAsia Expo 2010.
Primary business The respondents were asked what their primary business
was. They could choose multiple choices from distributor,
OEM, manufacturer, agent, media, retailer, research
organization and others.
50.5% of the respondents were distributors and 36.4% were
manufacturers. 16.2% of the respondents were also retailers.
See figure 2 for detailed numbers of the respondents’ major
businesses. For mature markets such as North America and
Europe, the visitors were distributors, OEMs, manufacturers,
agents, empties collectors, companies that provide
technology on manufacturing toner and the media. However,
of the respondents from South America, the spectrum
was narrower – with only distributors and manufacturers
responding. We can estimate from these numbers that
emerging markets have not enough support or rather that
the complete chain for the industry has yet to take shape in
emerging markets. Since the question was a multiple choice
one, the percentage in all is larger than 100%.
One other thing is noticeable: OEMs from India, North
America, Eastern Europe and other regions of the world also
took part in for RemaxAsia Expo 2010. They took up 4.0% of
the total respondents.
Purpose of visitIn order to find out what the visitors’ main purpose for their
visit, the respondents were asked to choose several options
from getting to know the market and collect information, to
look for new suppliers, to visit current suppliers, to look for
investment opportunities or partners and to experience the
show with a view to exhibiting next year.
From figure 3, we can see that to know the market
condition and collect market information was the most
important reason for visiting.
Visitor survey at RemaxAsia Expo 2010During RemaxAsia Expo 2010, a large number of international visitors came and communicated with local and overseas exhibitors about their needs. Recycling Times interviewed 98 overseas visitors to find out how their business are doing and their future focus for development in order to get a snapshot of the current state of the industry
▲ Figure 1 Overseas visitor percentage by regions
▲ Figure 2 Major businesses of RemaxAsia Expo 2010 visitors
Market DataRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn34
A significant 48.5% of overseas visitors were here to visit
current suppliers, which means 48.5% of all the overseas
visitors had suppliers who were the exhibitors or around
Zhuhai city during the trade show. This is a very good sign
for the manufacturers in the domestic industry. However,
53.6% of the overseas visitors came to the show hopping to
look for new suppliers, which signifies that the competition
is very fierce and the respondents were not satisfied with
their current suppliers be it on price, quality or other factors.
One other thing worth mentioning is the percentage of
respondents (12.4%) who were looking to find investment
opportunities or partners during the show. When Recycling
Times was chatting with some of the visitors, we also
met several people who wanted to join the industry as a
remanufacturer or distributor. Judging from this, we think
that the aftermarket printer supplies industry is still a thriving
industry with potential in spite of patent infringement
disputes and other difficulties ahead.
Products sourced from ChinaAlthough we know about the purposes of visiting the
trade fair, we wanted to also find out what kind of products
respondents sourced from China.
Again, the respondents were asked to do a multiple choice
question about what they were sourcing from China.
Those who were sourcing for finished products (including
inkjet and toner cartridges) accounted 54.6% of the overall
respondents. And the most wanted products are toner, parts
and components for toner cartridges, taking up 57.5% of all the
respondents. Inkjet cartridge parts and components are easier
to find than those for toner cartridges. In this survey, only
28.9% respondents were sourcing ink and related products
from China. This also reveals the weakness of China in terms
of toner products manufacture. As China has a slightly longer
period of time in making inkjet cartridges and shorter time in
producing toner-related products, this is also understandable.
It is a bit surprising that parts for printers and copiers were
sourced from China by 38.1% of the interviewed visitors.
Empties are also wanted from China. 25.8% respondents
indicated they looked to buy empty cartridges from China.
Following-up were paper and Ribbons (TTR), making up
23.7% and 22.7% respectively. Equipment such as refilling
machines, kits and tools were also looked for by 14.4% of the
respondents. The Chinese printer hunters also represented
14.4% of the respondents. For the packaging material, 9.3%
of the respondents would source them from China. Services
were also being sourced by the respondents (4.1%). Figure 4
gives the detailed results of this survey.
If we look at how the market segments break down, all
the regions except Eastern Europe have more than 50%
respondents sourcing finished products from China, with
the highest percentage being South America at 86.7%.
However, only 10% respondents from Eastern Europe said
they would source finished products from China. Given that
60% of them were distributors and only 10% Eastern Europe
respondents were manufacturers, this suggests that the local
distributors in Eastern Europe market supply ink, toner,
parts and components for local manufacturers. That is, the
manufacturers rely on the distributors for supply of parts and
components and don’t import themselves.
▲ Figure 4 Products sourced from China by overseas visitors of RemaxAsia Expo 2010
▲ Figure 3 What is your main purpose of visit?
Market DataRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 35
Target markets Western and Central Europe were the most mentioned
target markets during the survey, with 37.1% respondents
identifying these as their main target market.
The second one was South America, taking 28.9% of
the vote. It is worth noticing that all the respondents
from South America marked South America as their target
market but marked none of the other markets as target.
This suggests both that South America distributors and
manufacturers are committed to their local market or that
they are not strong enough to explore other markets. To a
certain point, this also says that the market is not mature
yet and the potential is enormous since the market is set as
target market by distributors and manufacturers from all the
other parts of the world. South America has already been
recognized as an emerging market.
China was targeted by 11.3% of the overseas as main
market, ranking eighth among the 10 regions we cut the
world into. This may be due to the some market players
have cut their prices in order to grab more market share
and other form of vicious competition in China, which is
not positive for the long-term development for the future
of the aftermarket printer supplies industry as international
players are reluctant to come into the Chinese market.
Japan remains the least penetrated by international
visitors for the reason that the Japanese market has
relatively higher demand over quality and exclusive trends
towards foreign brands.
Development focusFrom Figure 6, we can learn the 68.0% respondents would
place future development focus on compatible cartridges
while 47.4% also put emphasis on remanufactured
cartridges. 14.4% respondents would develop in paper,
CISS, parts, providing an OEM service, empties, toner, OPC,
ink and other parts and components and services (such
as MPS) that support
the development of the
industry.
The South American
respondents were more
interested in compatible
cartridges, with 93.3%
of them hoping to exert
efforts in this field in the
future while only 13.3%
of them would focus on
remanufacturing cartridges.
Other emerging markets such as East Europe, India other
and regions show the same pattern. 80% respondents
from East Europe would focus on producing compatible
cartridges. 69.2% of India respondents would place
compatible cartridges as future emphasis and 38.5% would
focus on remanufacturing cartridges. In the “other regions”
market segment, 83.3% respondents saw developing
compatible cartridges as their main focus.
In North America and Western and Central Europe,
the situation was opposite. More placed remanufactured
cartridges as future focus.
Summary97 visitors make up a relatively small sample; however, we
can still see the potential of the industry and its dynamics,
especially with regard to future development and their
focus. It is evident that the market is feeling the competitive
pressures as many players are busy looking for new suppliers
and reaching out for new development.
This is a general picture of the international visitors’
situation, to know more about the exhibitors’ development
situation, please refer to Issue 8 of Recycling Times magazine.
If you have any views about these two reports, you are
welcome to contact Recycling Times’ editor at editor@
therecycler.com.cn.
▲ Figure 5 What are your main target market?
▲ Figure 6 Which of the following is the main focus of future development?
Market DataRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn36
The imaging industry has been showing outstanding
growth since the beginning of 2010. Leading printer
manufacturers such as Xerox, Lexmark and Canon have
reported their third quarter per formance and both
demand and sales are up, resulting in higher profits or
revenue. Recycling Times presents you with a closer look
at their performance.
Canon: big net profit increaseFor the third quarter of 2010, Canon reported net
income of ¥68,195 ($811 million), an increase of 85.6%
versus the third quarter of 2009, with net profit nearly
doubling, up 74.1% versus third quarter 2009.
Economic conditions have continued to improve broadly
throughout the world. In Japan, consumer spending
has shown signs of recovery, while in the United States;
consumer spending has grown steadily in spite of the
unemployment rate remaining at a relatively high level
and other concerns. While Europe recorded growth in
exports, the pace of economic recovery remained modest
as financial concerns within the region were not fully
eased. The Asian economies, such as China and India,
along with other emerging countries, recorded stable
expansion.
Within the off ice equipment market, demand for
network digital multifunction devices (MFDs) recovered,
particularly for color models. The company also reported
a steady rebound in sales of laser and inkjet printers.
Third quarter results by segmentWithin Canon’s Office Business Unit, sales of color
n e t w o r ke d M F P s i n c r e a s e d 3 8 % b o o s t e d b y t h e
recovery in demand for office equipment along with
the introduction of new imageRUNNER ADVANCE-series
products, while sales of monochrome MFPs increased
24%, reflecting the recovering market conditions. Sales
of laser printers increased 61%. Canon says sales of
laser printers in third quarter 2009 had been sluggish
due largely to adjustment of inventory levels. In spite of
OEMs continue to grow in Q3
▲ Figure 1 Office Business Unit actual sales of Q3 and projection of 2010
Office3Q FY
3Q 2010 Actual / FY 2010 Projection(Billions of yen)(Billions of yen)
600
900
2 000
3,000Sales Growth rate y/y( ) Local currency base
( )
404 507 433300
600
1,645 2,015 1,984 1,7371,000
2,000( )
03Q09 3Q10 3Q10
0FY09 FY10 FY10 FY10
Previous Current Current( Excluding new consolidation
17 7%750
OP ratioOp.Profit 18.5%150
OP ratio
projection
Growth rate y/y
projection Projection( Excluding new
consolidationeffects )
consolidationeffects )
229 308285 293
17.7%13.9% 14.8%14.1%
250
500
8059 76
15.1%
50
100Growth rate y/y .
229 308285 2930
FY09 FY10 FY10 FY10
8059 760
3Q09 3Q10 3Q10Previous Current Current( E l di Previousprojection
Currentprojection
CurrentProjection
( Excluding new consolidation
effects )
( Excluding new consolidation
effects )
+20.6%(+27.7%)+25.6% +35.7%
+30 3% +27.7%
14.5%
Market DataRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 37
the effects of the strong yen, third quarter sales for the
segment totaled ¥506.9 billion ($6,035 million), up 25.6%
year-over-year, and were ¥1,438.0 billion ($17,119 million)
for the nine months ending September 30, 2010, an
increase of 21.9%. Profit increased 30.3% to ¥76.3 billion
($908 million) for the third-quarter, and increased 56.0%
to ¥232.2 billion ($2,764 million) for the combined nine-
month period, mainly as a result of expanded sales and
the rise in the gross profit ratio.
Figure 1 shows the Office Business Unit’s actual sales
and the projection for the whole year of 2010.
Figure 2 reveals the sales situation with regard to
copiers. The total year-on-year growth rate was 28% in
quarter three.
Within the Consumer Business Unit, Canon reported
that sales of inkjet printers, displayed solid growth,
particularly in Asia, but sales volumes decreased slightly
from the level a year ago, and these were also affected by
the strong yen. During the third quarter Sales of inkjet
printers rose 3.3% to ¥324.8 billion ($3,866 million), and
rose 10.2% to ¥979.1 billion ($11,656 million) for the first
nine months of 2010. Sales volumes for new digital SLR
cameras also rose.
In Canon’s Industry and Others Business Unit, sales of
semiconductor lithography equipment increased 31.7%
to ¥109.8 billion ($1,307 million) in the third-quarter, and
rose 18.2% to ¥301.0 billion ($3,584 million) in the fits
nine months of 2010.
Profits in Canon's Office Equipment Business grew 30%,
while Xerox Corp (XRX.N), Canon's main rival in office
equipment, also beat quarterly profit estimates at the end
of October signaling a rebound in companies' confidence
about spending.
Overall, Canon's sales grew in all geographical areas
except Japan.
OutlookDemand for such products as color network digital
MFDs and laser printers are projected to head toward a
recovery. With respect to the consumer products market,
demand for inkjet printers is likely to expand gradually in
response to the economic turnaround.
For the full year to December 31, 2010, Canon now
projects the following:
• net sales of ¥3,710.0 billion ($44,167 million), a year-
on-year increase of 15.6%
• operating profit of ¥390.0 billion ($4,643 million), a
year-on-year increase of 79.7%
• net income of ¥245.0 billion ($2,917 million), a year-
on-year increase of 86.1%
• operating profit of 390 billion yen ($4.79 billion).
▲ Figure 2 Copier actual sales of Q3 and projection of 2010 in Office Business Unit
Office (Copiers) Growth rate y/y
(Unit base)3Q 2010 Actual / FY 2010 Projection
(Unit base)
Copiers 3Q FY
Color +38% +31%
M 24% 13%
Growth rate y/y( ) Local currency base
Sales(Billions of yen)
800 OthersOther printing devicesColor copiersMonochrome copiers
2 000
2,500 Mono-chrome
+24% +13%
Total +28% +18%
( ) Local currency base
2,015 1,984
600 507
4041,500
2,000Color ratio (Copiers)
3Q FY
Value base* 52% 52%
1,645
400404
1,000
, Value base* 52% 52%
Unit base 29% 30%
*Includes consumables
200 500+9.3%(+20.1%)
+6.5%(+13.0%)
03Q09 3Q10
0FY09 FY10 FY10
Previous CurrentCopier total
Growth rate y/y
-2.4%(+6.7%) -3.5%(+2.4%)
Copier totalPrevious
projectionCurrent
projectionGrowth rate y/y
+3.3%(+13.2%) +1.5%(+7.7%)Growth rate y/y
Note: FY10 projections include effects of new consolidation in "Others."
Market DataRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn38
Lexmark: profit rose“Lexmark’s third quarter earnings were better than expected
with ongoing good revenue growth, strong earnings growth and
strong cash flow,” said Paul Rooke, Lexmark president and chief
executive officer.
“These results were driven by our improved product lines,
continued growth in managed print services, and ongoing strong
growth in workgroup lasers and higher-end inkjet products,”
added Rooke.
The Company is primarily managed along divisional lines: the
Printing Solutions and Services Division (PSSD) and the Imaging
Solutions Division (ISD):
Printing Solutions and Services Division (PSSD)PSSD primarily sells laser products and primarily serves
business customers. Laser products can be divided into two
major categories – shared workgroup products and lower-priced
desktop products.
Third-quarter PSSD revenue ($731 million) grew 12% year-on-
year. PSSD hardware revenue grew 19% and laser unit shipments
grew 5%, with over 20% growth in total workgroup lasers and
laser MFPs. PSSD’s laser average unit revenue (AUR) was up 14%,
driven by a positive mix shift in the percentage of workgroup
products.
In early October, Lexmark announced a significant expansion
of its workgroup color devices with the introduction of the
new Lexmark X792 family of color laser multifunction products
(MFPs), the Lexmark C792 family of color laser printers and the
Lexmark X925 and C925 Series of A3 (11-inch x 17-inch) ledger
color offerings. The color laser printers and MFPs include 12
new workgroup models, each including an e-Task color touch
screen.
PSSD is primarily focused on capturing profitable supplies and
service annuities generated from workgroup monochrome and
color laser printers and laser MFPs.
Imaging Solutions Division (ISD) ISD predominantly sells inkjet products to a range of
customers, including small office home office (SOHO) users,
professionals and consumers who are heavy users, as well as
business users who may choose inkjet products as a lower-
priced alternative or as a supplement to laser products. In
certain geographical areas ISD also sells select laser products to
SOHO and business users that purchase products through retail
channels.
The ISD revenue of $274 million declined 10% year to year, and
all other GAAP revenue was $14 million, or $20 million excluding
acquisition-related adjustments. ISD hardware revenue declined
15%. Strong growth in higher-end inkjets will offset the decline
in low-end units, reflecting the ongoing transition of the inkjet
product line. ISD unit shipments declined 28% but ISD AUR
increased 17% driven by a positive shift in the percentage of
higher-end inkjets in the mix.
The supplies revenue grew 4% as strong growth in laser
Office (Other Printing Devices) Growth rate y/y
( )3Q 2010 Actual / FY 2010 Projection
(Unit base)
LP 3Q FY
Color +26% +47%Growth rate y/y( ) Local currency base
Sales(Billions of yen)
2 000
2,500800 OthersOther printing devicesColor copiersMonochrome copiers
Mono-chrome
+64% +67%
Total +58% +64%2,015 1,984
1,500
2,000600 Color ratio (LP)
3Q FY
V l 41% 42%
1,645507
404
1,000
,
400Valuebase*
41% 42%
Unitbase
13% 13%+13.5%(+24.7%)
+10.9%(+19.4%)
404
500200 *Percentage of Other PrintingDevices Sales attributable to Color LP
0FY09 FY10 FY10
03Q09 3Q10
Previous Current
Note: FY10 projections include effects of new consolidation in "Others."
Previousprojection
Currentprojection
▲ Figure 3 Other printer devices sales of Q3 and projection of 2010 in Office Business Unit
Market DataRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 39
supplies was partially offset by an ongoing decline in inkjet
supplies.
The introduction of new products such as Lexmark's
Professional Series, including inkjet AIOs (including new Web-
connected touch screen AIOs) targeted for small and medium
businesses and the announcement in October 2010 of the
Lexmark Genesis inkjet AIO, a unique device that extends the
company’s line of inkjet AIOs by targeting professionals, small
business and home office customers. The Web-connected
device is equipped with sophisticated features and functionality,
including the 4.3-inch capacitive color touch screen, the
Platinum, Pinnacle, Interact and Vizix print technology, which
uses separate ink cartridges to enable greater speed and
produces high quality print output at an economical replacement
cost for customers.
By strengthening the Company's focus on the sale of higher-
end, higher page generating inkjet devices, the longer-term ISD
objective is to ultimately stabilize and grow supplies revenue
based on a smaller installed base of higher page generating
devices.
In November, Lexmark announced it was combining its two
major printing operations – inkjet and laser – into a single
organization to target additional sales to businesses. The
combination of Lexmark’s Printing Solutions and Services
Division and the Imaging Solutions Division will be named
Imaging Solutions and Services (ISS). It is said that Lexmark’s
strategy of shifting inkjet technology upstream to high-usage
business customers now offers the opportunity to simplify
processes across R&D, marketing and sales teams into a
single organization, Imaging Solutions and Services and the
combination of the divisions will “bring more value to customers
(and) more consistency to our products”, said Jerry Grasso,
spokesman for Lexmark. He also said the idea behind it is that
Lexmark's inkjet printers have become more and more geared
toward businesses in recent years. Because lasers were already
focused on that type of customer, it made sense to unify the
sales, marketing, and research and development portions of the
businesses.
OutlookIn the fourth quarter of 2010, the company currently expects
low single digit revenue growth, and GAAP earnings per share
to be around $0.86 to $0.96, or $1.03 to $1.13 excluding $0.17
per share for restructuring-related and acquisition-related
adjustments. GAAP earnings per share in the fourth quarter
of 2009 were $0.76, or $1.16 excluding $0.40 per share for
restructuring-related adjustments.
XeroxXerox announced third quarter 2010 results that include
adjusted earnings per share of 22 cents and $366 million in
operating cash flow. Third quarter revenue of $5.4 billion was up
48%.
“Building on our solid first-half results, we delivered steady
revenue and earnings growth in the third quarter, keeping us on
track to close the year strong,” said Ursula Burns, Xerox chairman
and chief executive officer. “We’ve transformed our company
into the world’s leading enterprise for business process and
document management. During the third quarter alone, signings
for service contracts grew 26% and pro-forma revenue from our
BPO offerings was up 8%, along with 13% growth in equipment
sales,” she added.
Xerox’s operations cover Technology, Service and Other. We are
going to focus on the Technology segment, which includes the
sale of products and supplies, as well as the associated technical
services and financing of those products.
Segment Profit Third quarter 2010 Technology profit of $247 million showed
an increase of $13 million from third quarter 2009. The
increase in revenues and the lower cost and expense driven
by restructuring more than offset the negative mix impact
on gross profit from the increased percentage of equipment
revenues.
PSSD
ISD
72%27%
All other ~1%
Revenue by Segment
Revenue by Geography
U.S.
OtherInternational
45% 33%
22%
Europe
Revenue Composition
▲ Figure 4 Lexmark Q3 revenue by segment
Market DataRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn40
The Technology segment is centered on strategic product
groups, which share common technology, manufacturing and
product platforms. This segment includes the sale of document
systems and supplies, provision of technical services and
financing of products. The revenue mix was 22% for Entry, 56%
for mid-range and 22% for high-end products.
Entry includes A4 devices and desktop printers. mid-
range includes A3 devices that generally serve workgroup
environments in mid to large enterprises. This includes products
that fall into the market categories (Color 41+ppm <$100K and
Light Production 91+ppm <$100K).
High-end products include production printing and publishing
systems that generally serve the graphic communications
marketplace and large enterprises, which we will not cover here.
Entry • 65% increase in installs of A4 black-and-white multifunction
devices driven by growth across all regions.
• 44% increase in installs of A4 color multifunction devices
driven by strong growth across all regions.
• 13% increase in installs of color printers driven by higher
sales of Xerox-branded products and sales to its OEM partners.
Mid-range • 22% increase in installs of mid-range black-and-white devices
driven by growth in recently launched mid-range products.
• 47% increase in installs of mid-range color devices primarily
driven by demand for new products, such as the WorkCentre
7120/7700, and the continued strong demand for the ColorQube
and the Xerox 700.
OutlookXerox now expects 2011 full-year adjusted earnings per share
of $1.05 to $1.10, up from 95 cents to $1.05 per share. The
company also expects free cash flow of $2.1 billion and $1 billion
in available cash for 2011.
Kodak: loss narrowsEastman Kodak Company reported a narrower loss for
the third quarter on improved profit margins and continued
operational improvements, despite a marginal fall in revenues.
The third quarter sales figure was $1.758 billion, a 1% decrease
on the third quarter of 2009, and the third quarter loss was $43
million, or $0.16 per share, compared with a loss of $111 million,
or $0.41 per share, for the third quarter 2009.
Sales in the quarter slipped 1% to $1.758 billion, which includes
an unfavorable currency impact of two percentage points.
Analysts expected sales of $1.61 billion. Second quarter sales
were $1.57 billion.
There a re three g roups in Kodak ’ s opera t ions :
Consumer Digital Imaging Group, Film, Photofinishing
and Entertainment Group and Graphic Communications
Group (which we will not cover here). The business-unit
performance is as follows:
Consumer Digital Imaging GroupIn Consumer Digital Imaging Group third quarter sales were
$670 million, up 25% from last year. Revenue from the digital
businesses grew 10% in the quarter, reflecting increased demand
for consumer and commercial inkjet products, packaging
solutions, and workflow software and services, along with a
successful non-recurring completion of intellectual property
licensing agreement.
Third quarter earnings from operations for the segment
improved by $171 million to $82 million, up from an $89 million
loss in the prior-year quarter.
Film, Photofinishing and Entertainment GroupThird quarter revenue from Film, Photofinishing and
Entertainment Group declined 25% to $431 million versus third
quarter 2009 and sales dropped 2.5% to $657 million at Graphic
Communications Group.
Profits from the company’s digital portfolio showed year-over-
year improvement for the fourth consecutive quarter.
Chairman and Chief Executive Officer Antonio M. Perez
commented, “Our third quarter performance was marked by
continued acceleration in our strategic digital growth businesses,
positive cash generation, improved profit margins, and continued
operational improvements across the company. I am particularly
pleased with the performance of our core growth businesses-
Consumer Inkjet, Commercial Inkjet, Packaging Solutions, and
Workflow Software and Services.”
Outlook “Revenue growth in these businesses continues to accelerate
and in the third quarter grew by a combined 23%. We also
enjoyed growth in equipment unit placements, which will drive
future consumable sales. All of these factors give me increased
confidence that we are on track for a strong fourth quarter
performance, and continued improvement as we move forward,”
said Perez.
For 2010, Kodak says it remains focused on three key financial
goals: digital-revenue growth, earnings from operations and cash
generation. Kodak continues to target total company revenues
of $7.5 billion to $7.7 billion for 2010 and earnings of $275 million
to $375 million.
It is also forecasting a 2010 loss in the range of $50 million to
$150 million, including the impact of a $102 million charge for
early extinguishment of debt. Analysts expect the company to
report revenues of $7.28 billion for fiscal 2010.
www.rechargrussiaexpo.com
Welcome to RechargRussia Expo 2011,Your Pathway to the Russian Aftermarket of Printing Supplies!
RechargRussia and RechargEast Magazines, well-reputed magazines specialized in the aftermarket of printing supplies in Russia and Eastern Europe, are happy to invite your company to take part in the VIIIth edition of RechargRussia Expo 2011, which will take place in Moscow, Russia, on May 18, 19, 20, 2011.
The RechargRussia Expos are traditionally organized in Moscow, which hosts this exceptional and unique event for the printing industry every year. The exhibition attracts thousands of specialists from the aftermarket of imaging and printing supplies. Owner, managers, technical specialists and salesmen from Russia and CIS countries are the main visitors of the exhibition.
RechargRussia Expo is the only professional event in the field of printing supplies organized in the Russian capital. Leading manufacturers and distributors of toner, inks, OPC drums, parts, remanufactured and compatibles cartridges all gather in Moscow each year to show their best products to the Russian aftermarket companies. Local distributors, resellers, rechargers come to the exhibition to get to know local and international exhibitors, get updates on market trends, start new and reinforce existing relationships and partnerships.
Our experience in organizing 7 consecutive specialized exhibitions in Russia is extremely valuable and can be used by your company to its utmost profit.
Feedback from the 2010 exhibitors:
Steven Yao, APEX, China: “The 2010
expo exceeded our expectations. We will
surely take part in the show in 2011 and
will probably choose to have a bigger
booth to display all our products”.
Angela Shekyls, SPEED INFOTECH
Holdings, Ltd., Russia/China: “The
2010 exhibition was good to our company.
We met many visitors from the last year’s
show. Although we didn’t get too many
new customers from the 2009 show, but in
2010 the prospects are looking good. This
year there have been much fewer end users,
but the number of distributors has grown.
In addition, we’ve had many visitors from
the far regions of Russia. We are definitely
interested very much in participating in the
expo in 2011.”
Ozlem Eris, IPM, Turkey: “In 2009
we established fruitful cooperation with
some Russian companies. In 2010 we are
expecting to make our position even stronger
in this market. All this happened with the
help of RechargRussia Expos. We are glad
that we participated in RechargRussia Expo
2010 and we have already reserved our
booth for 2011.”
Be in Moscow on May 18 and 19, 2011, when you will have the opportunity to attend the presentations of the 20 biggest buyers of compatible and remanufactured cartridges in Russia and CIS!
With the total annual purchasing power of over $250 million, these companies are the leaders in the market. Don’t miss the chance to meet them personally as they are always open to new mutually beneficial partnerships.
Russian companies buy remanufactured and compatible cartridges for over $586 million* per year. (*Source: Business-Inform, Russia)
Russia Market of Printing Supplies in 2004-2009
Russia Market of Laser Printing in under 45 ppm Segment
Year
Year
Qty, million units
Qty, original cartridgesQty, non-original cartridgesQty, refills
Genuine suppliesCompatible suppliesRefills
Market share (%)
www.rechargrussiaexpo.com
RechargRussia Expo 2011 is your pathway to the Russia aftermarket of printing supplies!
Special exhibitor’s packages:• special ad discounts in both of the RechargEast and RechargRussia Magazine;• monthly mail distribution to all our Russian database (3,000+ companies): the emails include exhibitors’ profiles and hot offers;• monthly bulletins to all exhibitors full with important information about the Russian Remanufacturing Industry as well as large local buyers of compatible finished ink and toner cartridges.
Contact our representatives for more details.
In 2009 alone, over 6,000,000 compatible cartridges and over 34,000,000 remanufactured cartridges were sold in Russia.
OEM companies managed to sell just 9,200,000 cartridges.
The potential of Russia’s aftermarket of printing supplies is visible with an unarmed eye.
Is your company among the suppliers of spare parts for remanufactured cartridges or of compatible cartridges? Is your company in search of new markets? Is your company on the watch for opportunities?
Consider Russia - one of the fastest growing printing markets in the world!
We can take
you there:
Russia is a huge growing printing market:
Russia is a huge growing printing market:
Mirena Polihronova | [email protected]
Toby Tan | [email protected]
Alisa Andreeva | [email protected]
Trade Center “TISHINKA”, T-Modul • Moscow • Russia
ProfilesRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn42
As Speed Infotech Holdings Limited approaches its tenth
anniversary in 2011 the Recycling Times interviewed company
CEO, Mr Benjamin Young, to discover just how a small
trading company became one of China's top remanufacturers
of inkjet and laser toner cartridges – and a leading worldwide
distributor of aftermarket print consumables. “From the first
day we started business we understood the importance of
putting the customer first and how essential it is to introduce
the company and products to as wide an audience as
possible, so when customers begin the search for a supplier
we are always there ready to explain why they should do
business with us,” says Young.
Intricacies of doing businessOver the past ten years, Speed Infotech Holdings has
participated in over 50 trade exhibitions in many different
countries throughout the world – this experience, Young
says: “Has greatly raised our knowledge and awareness of
different business cultures”. He goes on to explain that,
“without understanding how things get done in a market
such as Russia, it would be impossible to even begin a
business relationship.”
Discovering just how a Shanghai-based company got
to learn so much about the intricacies of doing business
overseas we needed to learn more about their sales and
marketing strategies. “ We
seek to employ only the
m o s t e x p e r i e n c e d a n d
knowledgeable local staff,
we take good care of them
and provide them with all
the support they need to
succeed,” Benjamin Young
explained.
“Relat ionships between
people are a fundamental
element of business, they
cannot be ignored. Regardless
of how much money you
spend on adver t i s ing or
market ing – ult imately a
company must stand by its products and support its people
in every way.” He adds, “We want our people to become
the best they can be. My responsibility is to ensure we bring
the right talent together so that we can remain in the top
echelons of the remanufacturing business.
Expanding new marketsAs the focus on expanding new markets is uppermost in the
minds of CEOs around the world, Benjamin Young reflects
on some of the successful and not so successful strategies in
pursuit of market share. “As we face fierce price competition
in South America we decided to play to our strengths,
displaying to our customers the difference in quality and how
that affects both a company reputation and profitability.” He
continues, “we found many potential customers were being
price-conditioned by traders to seek out the lowest offer
price instead we took the view, along with other well-known
manufacturers, that it was better for the market to promote
the quality of the product.”
Often the 'Made in China' label has a negative association
applied to products. Many Chinese producers believe that
fighting on price is the only way to compete in the market,
meanwhile however, the consumers think very differently.
Most customers are educated in the realities of business
to understand it is better to buy one good product than
Speed Infotech expands worldwide
▲ Speed’s global network
ProfilesRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 43
several bad products. It saves both
time and money for the client and
the supplying company is able to
establish a bond of trust. “Integrity
in our commercial dealings and our
commitment to quality has been
the key to our success in new and
emerging markets – we understand
how difficult it is to win the business
of a new customer, and how easy it
is to lose a customer if the service is
poor, and if the products are cheaply
made, it is obvious to potential
customers that such suppliers are
only interested in their money and not building a strong
business relationship.”
External factorsAside from the supplier/customer relationship other
external factors can affect the business environment. Recent
developments worldwide in the treatment of waste and
the resulting legislation forbidding the transport of waste
products have begun to adversely affect the industry. Young
commented, “meeting these new external challenges to
our industry will be tough, this is true. I think the industry
needs to work together to lobby governments on the value
and environmental benefits our business can yield.” He
further added, “a policy of protectionism in countries East
or West will serve no long-term purpose, only ever short-
term benefits. Fair competition in open markets is the best
solution to meeting environmental objectives and worldwide
industrial growth. Legislation has an important role, but it
must be a balanced approach.”
Time and resourcesOver the past few years Speed Infotech has been investing
into new technologies and infrastructure. We asked Mr.
Young to explain some of the investment strategies. “As we
discussed, each market has specific needs and requirements
especially in BRIC (Brazil, Russia, India, and China) countries,
so whilst pricing policies and payment terms are important
they are not necessarily our, or our customers highest priority
when the means of distribution, the quality standards,
and the customs formalities take so much of our time and
resources.”
Contracts signed“We are good at what we do. Remanufacturing high-quality
inkjet and laser toner cartridges is a precision job, and this
is an innovation-led business we are in. Therefore, it is
absolutely essential to invest in research and development.”
The Shanghai factory has been recently revamped with new
production lines, and contracts have been signed with several
leading aftermarket parts suppliers to support the increased,
and more diversified range of laser toner cartridges in
production. Young explains, “Our market research and
customer feedback shows continued demand for mono and
color laser toner, we are tooling our factory to capitalize on
this future demand, and training our personnel accordingly.”
Company expansion projectsExclusively, for the Recycling Times, the Speed Infotech
CEO hinted at plans to launch a new international distribution
hub outside of the Chinese mainland. “We have been
studying the investment opportunities in Europe and hope
to release details about our company expansion projects in
the coming months.” Speculation about a new warehouse
facility has been reported as the most likely development,
supporting increased sales volumes into European Russia and
neighboring countries.
▲ Warehouse of Speed
▲ Speed products
Tech ZoneRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn44
First released in April 2008 the Xerox Phaser 3100 is based on a 20ppm, 600
dpi MFP engine that has a first page out in less than 13 seconds. These machines
can print, copy, fax and scan. The printers come with a starter cartridge rated for
2,000 pages and the standard cartridge (106R01379) is rated for 4,000 pages at 5%
coverage. These machines use a somewhat unique method of telling the printer a
new cartridge has been installed. Instead of a chip on the cartridge they use a Key
card that is inserted separately into the printer (See Figure 1). These reset cards need
to be replaced each cycle. When packaging the cartridge it is a good idea to tape the
card to the top of the bag so the user does not forget they have to insert the card for
the cartridge to work ( just like the OEM does)
An interesting item about this system is that the cartridge does not have a toner
end detection system. It is all controlled by the reset card.
These cartridges are fairly easy to do, and with a retail cost of $178.00* very
profitable too!
*As of February 2010
Remanufacturing the Xerox Phaser 3100 Toner Cartridge
By Mike Josiah and the Technical Staff at Uninet Imaging
Supplies needed
• Dedicated Phaser 3100 Toner • Dedicated Phaser 3100 Reset Card • Conductive grease
• 99% pure isopropyl alcohol • Cotton swabs • Soft, lint free wipes
Tools needed
• Toner approved vacuum. • A small Common screw driver • A Phillips head screwdriver
• Needle nose pliers • Size T-7 Torx driver
Remove the 2 silver pins, one from each side of the cartridge. Pry them
out with a small jeweler’s screwdriver and then grab them with wire cutters to remove them. Remove the Torx screws and plate
from both sides of the cartridge.2step
> T h e To r x s c r e w s u s e d i n t h e s e cartridges are size T-7.3st
ep >
1step
>
Tech ZoneRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 45
Remove the two screws on the wiper blade, and the blade. Clean out the
waste chamber.NOTE: Be very careful not to damage or distort the thin Mylar Recovery Blade next to the wiper blade. If this blade is bent or damaged in any way, it should be replaced.
8step
>
Re-install the two screws and the wiper blade. 9st
ep >
Clean off a l l the o ld conduct ive grease from the PCR contacts, and
replace with new. Remember, whenever using conductive grease more is never better. Only use a small amount (Match what the OEM had there).
10step
>
Install the cleaned PCR.11step
> Remove the four loose gears from the hopper.14st
ep >
From the gear side of the drum half, take a small punch (1/4”) or screwdriver
and drive the metal axle pin out. This axle is fairly tight. Make sure you do it from the gear side, (the keyed Side), if you try and drive the axle out from the opposite side, the axle will not move and you may damage the drum ground contact inside the drum. Remove the drum.
5step
>
Remove the PCR and clean with you preferred cleaner.6st
ep >
Install the drum axle from the hub side. Make sure the keyed end of the axle is
installed first. It is easier if you mark the keyed end with a marker so you know how to orientate it when installing it. In the picture show the side marks show the orientation of the flat or keyed edge, the top one show the keyed edge location.
12step
>
On the toner hopper, note the location of all the gears.13st
ep >
Remove the two screws on the wiper blade, and the blade. Clean out the
waste chamber.7step
>
Pry out one of the side panels, and separate the two halves.4st
ep >
Tech ZoneRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn46
Pry off the metal bushings from both sides of the developer roller shaft.19st
ep >
Remove the lower metal brace. Lift it out from the left side as the right side
has a tail that runs through the cartridge wall.24st
ep >
Remove the two screws from the doctor blade.
NOTE: The doctor blade in these cartridges actually consists of three parts. An upper metal brace, the doctor blade itself which is a very thin sheet of metal and the lower metal brace. Be very careful when handling the dr. blade as it is very easily bent.
21step
>
Remove the upper metal brace, being careful not to damage the alignment
pins. The pin on the left side is normally tight so more care should be taken there.
22step
>
Remove the Dr. Blade. Lift it out from the slot on the left side of the hopper.
Again, be very careful not to damage it. Clean the blade with a cotton swan and alcohol.
23step
>
Remove the developer roller.20step
>
Remove the screw and holder from the gear side of the developer roller.
Press in on the plastic tabs on the back side of the holder to remove it.
17step
>
R e m o v e t h e s c r e w , h o l d e r a n d contact from the contact side of the
developer roller. Press in on the plastic tabs on the back side of the holder to remove it. Be careful not to lose the contact!
18step
>
Remove the fill plug and dump out any remaining toner from the hopper.16st
ep >
Remove the gear from the fill plug area by pressing in on the tab.15st
ep >
Tech ZoneRecycling Times Magazine
www.recyclingtimes.com.cn | December 2010 47
Replace the screw, holder, and contact on the contact side of the developer
roller shaft.31st
ep >
Replace the developer roller into the cartridge. The long metal shaft side
goes to the gear side of the hopper.28st
ep >
Replace the cleaned Dr. Blade assembly in the hopper. Install the lower brace first inserting
the tail through the cartridge wall and under the copper contact. Install the Doctor Blade next making sure the lip is facing down and the blade fits over the alignment pins correctly.
26step
>
Replace the upper metal brace and the two screws. Clean the developer roller with a
clean lint free dry cloth. We do not recommend any chemicals be used at this time.
27step
>
Clean and replace the conductive grease on the developer roller and the
feed roller shafts.Note that the feed roller contacts also run to the Dr. Blade. This helps ensure that the toner is properly charged throughout the hopper.
32step
>
Replace the metal bushings on both sides of the developer roller shaft.29st
ep >
Replace the screw and holder on the gear side of the developer roller shaft.30st
ep > Fill the hopper with the Phaser 3100 toner.
Replace the fill plug.33step
>
Clean out any remaining toner from the hopper. Make sure to get the feed roller
and foam seals clean. It is not necessary to remove the roller, just make sure it is clean.
25step
>
Tech ZoneRecycling Times Magazine
December 2010 | www.recyclingtimes.com.cn48
Printing a test page:The simplest way to test a cartridge is to make a copy. To do this place the original face
down in the feeder. Press the copy key, number of copies desired and the start key.
Cleaning the scanner:If copied and transmitted pages come out with marks on the pages, but the reports are
clean, the scanner is dirty. To clean the scanner, open the scanner cover.
Wipe the scanner window down with a lint free cloth moistened with Isopropyl alcohol.
Repetitive defect chart
Mike Josiah is the East Coast Technical Director at Uninet Imaging. A global distributor of toner,
OPC drums, wiper blades and other supplies. An industry veteran since 1987, Mike is a member
of ASTM committee F.05, the STMC Technician Certification Committee as well as an STMC
trainer. He regularly contributes articles and teaches seminars at association meetings and trade
shows.
Mike Josiah
Install the drum cover if available. It needs to be taped in place. Use a
brightly colored tape so the user will notice it.37st
ep >
After the cartridge has been tested and bagged, tape the Key card to the top
of the bag so the user will see it. This key card is installed into the printer separately from the cartridge.
38step
>
Install the metal plates and screws.36step
>Place the two halves together and install the two metal pins.35st
ep >
Replace all the gears on the hopper as shown.34st
ep >
OPC Drum 75mm
Developer roller 50mm
PCR 29mm
www.rechargrussiaexpo.com
Welcome to RechargRussia Expo 2011,Your Pathway to the Russian Aftermarket of Printing Supplies!
RechargRussia and RechargEast Magazines, well-reputed magazines specialized in the aftermarket of printing supplies in Russia and Eastern Europe, are happy to invite your company to take part in the VIIIth edition of RechargRussia Expo 2011, which will take place in Moscow, Russia, on May 18, 19, 20, 2011.
The RechargRussia Expos are traditionally organized in Moscow, which hosts this exceptional and unique event for the printing industry every year. The exhibition attracts thousands of specialists from the aftermarket of imaging and printing supplies. Owner, managers, technical specialists and salesmen from Russia and CIS countries are the main visitors of the exhibition.
RechargRussia Expo is the only professional event in the field of printing supplies organized in the Russian capital. Leading manufacturers and distributors of toner, inks, OPC drums, parts, remanufactured and compatibles cartridges all gather in Moscow each year to show their best products to the Russian aftermarket companies. Local distributors, resellers, rechargers come to the exhibition to get to know local and international exhibitors, get updates on market trends, start new and reinforce existing relationships and partnerships.
Our experience in organizing 7 consecutive specialized exhibitions in Russia is extremely valuable and can be used by your company to its utmost profit.
Feedback from the 2010 exhibitors:
Steven Yao, APEX, China: “The 2010
expo exceeded our expectations. We will
surely take part in the show in 2011 and
will probably choose to have a bigger
booth to display all our products”.
Angela Shekyls, SPEED INFOTECH
Holdings, Ltd., Russia/China: “The
2010 exhibition was good to our company.
We met many visitors from the last year’s
show. Although we didn’t get too many
new customers from the 2009 show, but in
2010 the prospects are looking good. This
year there have been much fewer end users,
but the number of distributors has grown.
In addition, we’ve had many visitors from
the far regions of Russia. We are definitely
interested very much in participating in the
expo in 2011.”
Ozlem Eris, IPM, Turkey: “In 2009
we established fruitful cooperation with
some Russian companies. In 2010 we are
expecting to make our position even stronger
in this market. All this happened with the
help of RechargRussia Expos. We are glad
that we participated in RechargRussia Expo
2010 and we have already reserved our
booth for 2011.”
Be in Moscow on May 18 and 19, 2011, when you will have the opportunity to attend the presentations of the 20 biggest buyers of compatible and remanufactured cartridges in Russia and CIS!
With the total annual purchasing power of over $250 million, these companies are the leaders in the market. Don’t miss the chance to meet them personally as they are always open to new mutually beneficial partnerships.
Russian companies buy remanufactured and compatible cartridges for over $586 million* per year. (*Source: Business-Inform, Russia)
Russia Market of Printing Supplies in 2004-2009
Russia Market of Laser Printing in under 45 ppm Segment
Year
Year
Qty, million units
Qty, original cartridgesQty, non-original cartridgesQty, refills
Genuine suppliesCompatible suppliesRefills
Market share (%)
www.rechargrussiaexpo.com
RechargRussia Expo 2011 is your pathway to the Russia aftermarket of printing supplies!
Special exhibitor’s packages:• special ad discounts in both of the RechargEast and RechargRussia Magazine;• monthly mail distribution to all our Russian database (3,000+ companies): the emails include exhibitors’ profiles and hot offers;• monthly bulletins to all exhibitors full with important information about the Russian Remanufacturing Industry as well as large local buyers of compatible finished ink and toner cartridges.
Contact our representatives for more details.
In 2009 alone, over 6,000,000 compatible cartridges and over 34,000,000 remanufactured cartridges were sold in Russia.
OEM companies managed to sell just 9,200,000 cartridges.
The potential of Russia’s aftermarket of printing supplies is visible with an unarmed eye.
Is your company among the suppliers of spare parts for remanufactured cartridges or of compatible cartridges? Is your company in search of new markets? Is your company on the watch for opportunities?
Consider Russia - one of the fastest growing printing markets in the world!
We can take
you there:
Russia is a huge growing printing market:
Russia is a huge growing printing market:
Mirena Polihronova | [email protected]
Toby Tan | [email protected]
Alisa Andreeva | [email protected]
Trade Center “TISHINKA”, T-Modul • Moscow • Russia