K/P Corp. Continues Expansion on Many Fronts
San Ramon, CA—K/P Corp. has been busy in the first half of 2000. It has invested more than $6 million company-wide to upgrade equipment, move to a more digital workflow and expand services to new markets.
To improve distribution and take advantage of the emerging opportunities in e-commerce product fulfillment, it opened a 12,000-square-foot mailing and fulfillment facility in Vista, CA, and a 14,000-square-foot mailing and fulfillment center in Atlanta. The company's Salem, OR, plant is also anticipating growth in mailing services and has also invested in new mailing equipment.
K/P Corp.'s printing production capacity is also on the rise. Its Salt Lake City plant anticipates sales growth of 60 to 70 percent this year, following the installation of a new six-color Heidelberg Speedmaster CD press at its current facility. At the same time, K/P has leased 25,000 square feet of space nearby in Salt Lake City to house a new fulfillment operation.
The company doubled the size of its Bay Area printing facilities with the openinig of the California Print Center in San Leandro. Officials say the move to San Leandro from a smaller location in Oakland enabled the company to expand its operation and add two new, 40˝ Heidelberg presses: a two-color and a six-color Speedmaster CD. The new facility also includes new digital proofing and platemaking systems.
The Print Division will occupy 40,000 square feet in the new 150,000-square-foot building. The remaining space will be annexed to K/P's fulfillment operation, located in the same commercial complex.
"We're thrilled with the larger space and new equipment," says Wendy Bogin, Print Division president. "While lots of our customers know about our direct mailing and fulfillment services, the Print Division gives us a better opportunity to show off our expertise as printing craftsmen."
The 70-year-old company has 13 facilities in four Western states and in Atlanta. In 1999, K/P reached $95 million in sales. K/P Corp.'s Seattle and Kent facilities reported sales of $25 million and increased their market share by 12 percent, according to Rick Scott, president of K/P's Northwest region. K/P's Web-based print ordering service had a five-fold increase in profitable sales.
In 1999, Scott says, the company invested $3.5 million in new equipment and other capital improvements in the Northwest. About $1 million of that went into installation of digital proofing and platemaking equipment at the Seattle printing facility.
Another significant investment in equipment was made at K/P's mailing plant in Kent, WA. A new automated jumbo inserter allows the company to insert up to six pieces of printed literature into a 10x13˝ catalog or booklet envelope. Officials say it is the only booklet inserter in the region.
On top of the strong sales performance, officials say an employee stock ownership plan started in 1997 has helped bring renewed energy and excitement to the company. Approximately 70 percent of employees have become shareholders. "People rise to amazing standards when they have a stake in the outcome," Scott observes.