UPM_News_2016

Strong bonds in Balkan business

When former competitors become trusted partners, both sides win. Polygrafsnab JSC’s close partnership with UPM began as a rival relationship back in the early 1980s.

Text: Mari Hirvi Photo: Polygrafsnab JSC

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UPM has significantly increased its lo- cal market share, while Polygrafsnab JSC has gained a dependable and trust- worthy newsprint supplier. “UPM is the biggest paper producer in Europe. It has a reliable sales poli- cy and a very well organized, knowl- edgeable and highly cooperative team of representatives on every major mar- ket. All orders are handled very quickly and the supplies arrive just on time, like a Swiss watch. There is no doubt in the quality and if any issues emerge, they are handled rapidly in favour of the cli- ent,” Komarov explains. Polygrafsnab buys a wide variety of UPM products besides just newsprint. “We have chosen UPM’s products for their high quality, stable runnabili- ty, low consumption of ink and mini- mal waste during the printing process. Their variety, optimum grammage, high brightness, excellent opacity and smoothness have won our confidence,” Komarov adds. In the future, he sees further oppor- tunities to expand cooperation between UPM and Polygrafsnab. “UPM is a predictable, strong and stable business partner on whom you can rely to sup- port your business strategy and achieve better results. The company delivers

olygrafsnab JSC is a leading Bul- garian wholesaler and distributor of newsprint, duplex board, LWC and other paper grades on the Balkan market. Back in the early 1980s, Poly- grafsnab was a key supplier of Russian newsprint. “We were originally UPM’s di- rect competitors on the local market,” says Tzanko Komarov , Chairman of the Board at Polygrafsnab JSC. “Back then, our company was a steady con- sumer of various grades of paper, in- cluding woodfree products, book pa- per, SC and LWC grades. UPM’s news- print deliveries mostly consisted of di- rect shipments to printing plants coor- dinated by the UPM office in Austria. “ A strategic change in UPM’s busi- ness completely transformed the rela- tionship between the two companies. “The new team of representatives in Sofia led by Nelly Zarkova changed the sales philosophy in a way that ena- bles our two companies to work togeth- er towards mutual goals. We have now become strong partners in the news- print sector.” Reliable as a Swiss watch According to Komarov, the change has brought considerable mutual gains.

high-quality products, thorough knowl- edge, strong support and great service.” Bleak future for newsprint? When asked about the future of the newspaper industry, Komarov sees loss of advertising revenues as the main problem: sales have plummeted around 60% in the Bulgarian printed media. “Sales worldwide are slowly de- creasing and the drop in circulations is quite sharp. Advertising has declined radically in Bulgarian newspapers in the last two years, so publishers are suf- fering from a lack of fresh income,” he says. Another key trend is that newspapers are becoming more visual. “Photos and illustrations are being used much more extensively as part of news reports. Newspaper formats continue to grow smaller, and the tabloid format is as popular as ever.” Komarov contends that the predicted demise of newsprint is much exagger- ated. “In spite of television and the In- ternet bringing news to consumer fast- er than newspapers – which still need to be physically manufactured and dis- tributed – newspapers will always exist in one form or another.”

Fast facts: Polygrafsnab JSC n Established in 1949, Poly­ grafsnab JSC is the oldest wholesaler of paper and board in Bulgaria. With turnover total- ling approximately €30 million in 2015, it is currently a lead- ing commercial supplier on the Bulgarian market. Holding an 81% share of the local news- print market, the company sup- plies more than 52,000 tonnes of newsprint annually. Polygrafsnab JSC has a stake in a number of basic coldset printing houses in Bulgaria, with plans to extend its interests in other printing houses on the Balkan markets. The company collects 15,000 tonnes of waste newsprint annu- ally and is the major collector of white paper, magazines and shavings from Bulgarian print- ers.

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