No more banknotes from BA Banknote after 2012

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Just read an article saying that BA Banknote will cease printing notes for Canada once all the new polymer notes are released. I guess the length of the life of the polymer notes and the cost of the equipment to produce them they decided that it was no longer worth staying in the business. 

Another article stated that there were 260 million $100 bills in circulation, and we've seen the EKA and EKZ notes which would make 220 million, and with a new prefix A to Z probably already printed while the presses were hot and with the expected life of a $100 now to be over 10 years they are probably done printing all the new polymer $100s and have sufficient inventory for the next 10+ years.

So we'll loose the "A", "B", "C", and the yet to be used "D" in the serial number prefix.

You can read more in this article: http://www.digitaljournal.com/pr/508841

Interesting.  So Canadian Bank Note will get a monopoly.  Then we really will have "monopoly money"!!!  (Bad joke, I know, but I thought it was funny!)

Interesting how the article states that BAI will cease its banknote operations by the end of 2012, and yet the BoC says that it could be until the end of 2013 before the last cotton paper notes are issued.  That's nearly a year for which paper will still be required. Sounds like yet more business for CBN...

They print notes ahead of when they are needed so they will be probably done printing a year in advance before the notes are issued, so it makes sense. I wonder if the prefixes will change now there is only one printer, they won't need the printer identifier any longer.

If CBN is looking after the Polymer series then it's possible we may see more Journey Series BABN notes being printed.  I've read reports elsewhere of BIA $20s in circulation out west.

Jobs lost at Ottawa printer due to Canada's new high-tech banknotes

Written by Kristen Read Tuesday, December 6, 2011

Back in June, Canadians heard the news about new high-tech polymer bills making their way into wallets this year. But unfortunately for one Ottawa banknote printer, the bills are so durable and long lasting that there is much less demand for reprinting, resulting in dramatic layoffs at the company.

BA International, a 145-year-old Ottawa printing company, announced last week that it plans to lay off most of its employees by the end of next year. The company produces currency, including bank notes, and currently employes 190 people.

Its Munich-based parent company, Gieseke & Devrient, released a statement explaining the plans for restructuring:
"As a result of changing conditions in the local Canadian bank note market, BA International will cease printing bank notes for the Canadian and international market at the end of 2012.
[...] The introduction of polymer bank notes in Canada significantly changes the local bank note market. Given that these notes are expected to last longer, the requirement to reprint bank notes is expected to drop from 2013 onwards."

The CBC reports in a recent article that both the Bank of Canada and BA International have confirmed that they are working together to save 30 to 40 jobs at the company in Ottawa. The plan would include BA International performing additional services for the Bank of Canada.

http://graphicartsmag.com/news/2011/12/jobs-lost-at-ottawa-printer-due-to-canadas-new-high-tech-banknotes

I had to come back for this one, even though I don't post regularly anymore...

Yep, the truth is, the new polymer banknotes are so durable and will last a long time.  So why use 2 printers when only one is necessary?  Makes a whole lot of sense to me.

As for the printer identifier letter after 2012, it makes me wonder if there may be a serial number format change when banknote production starts up again?  After all, the printer letter identifier may be deemed redundant and unnecessary after 2012.  It makes me wonder if we may see the return of 2-letter prefixes, but instead of using 7-digit numbers, they may expand the long number to 8 digits?  Or if we end up seeing a full serial number revamped format, seeing we haven't had any format revamp in more than 30 years?

It would not surprise me if one day we end up with only numerical serial numbers similar (for example) to those on Canadian Tire money notes.

It makes me wonder if we may see the return of 2-letter prefixes, but instead of using 7-digit numbers, they may expand the long number to 8 digits?

That's how the USA and England do it -- 2 letters and 8 digits.

Well, the US (BEP) actually uses three letters, counting the Federal Reserve District letter, for $5 and up. Also, they get nearly 100 million notes per block, not the 10 million Canada uses. While thinking about new and unusual serial number formats, how about the Eurozone currency which uses a final check digit which varies according to the country letter?

blumax

The change from 2-letter prefixes to 3-letter had (I believe) more to do with the finite number of 2-letter prefixes which were in short supply by the early 1980s.  There were no printer identifiers on earlier multicolour notes, and for denominations printed by both printers, the denomination letter served as a sort of printer identifier.  When the third prefix letter came into effect, it was just convenient to associate certain letters with one printer or the other so that both printers could use any and all denomination letters for the second letter of the 3-letter prefix.  I don't think it would be necessary to drop the first letter when British American International (BAI, formerly BABN) ceases production because each printer has more than one printer identification letter associated with it, thus allowing each printer to re-use denomination letters with different printer letters (like AUA, BUA, CUA, etc).

Also, keeping the current system of 3-letter prefixes allows the Bank of Canada to change its mind and do business with BAI again in the future.  Whether BAI will be capable of returning to banknote production after a long layoff is a completely different matter.  Remember, even though we seem to be heading toward a cashless society, the need for cash has increased exponentially with time.  It may take just a few years for Canada's need for circulating currency production to return to 2011 levels.  In other words, polymer notes may create just a temporary decline in the need for circulating currency.  Inflation could offset that decline in a hurry.

Inflation could offset that decline in a hurry.

It'd be kinda cool to see the return of $500 and $1,000 notes. I wonder what colour they would make them, as brown/pink would be easily confused with the current series (the $50 is a really grey area between red and pink.)

If they do away with the printer ID system and just use whatever letter they wish, then that system is better than 2 letters and 8 digits, since the theoretical limit of the former is 92.61 billion notes, whereas the latter is limited to 44.1 billion notes.

One big difference with the way Canadian notes are numbered is that there are different prefixes for each denomination, whereas the rest of the world generally sticks with starting from numbers like AA 0000000 for all denominations.

Canadian Bank Note buys BA International facility

OTTAWA—Canadian Bank Note is expanding with a third Ottawa facility, formerly owned by BA International. The location was purchased for a reported $10.2 million.

"The company is expanding and growing, it's running out of space," said Canadian Bank Note rep Judy Valz. The new 121,000 sq. ft. unit will extend operations from the company's Richmond Road headquarters, also specializing in security printing and distribution under the same management team.

Banknote specialist BA International ceased operations at the Gladstone Avenue facility last year following the Bank of Canada's adoption of longer-lasting polymer currency. Following the purchase, Canadian Bank Note now has 15 locations worldwide.

Valz said operations would start progressively over the next year and that equipment installs would be a combination of already owned machines and new purchases. She could not give details on equipment models due to security concerns.

Canadian Bank Note operates four main divisions: lottery systems, identification systems, payment systems and shareholder services. It prints passports, banknotes, travellers' cheques, government bonds, driver's licences and more for a host of different countries. According to PrintCAN's sister publication Graphic Monthly Canada, it was the eighth largest printer in Canada last year with $225 million in sales in 2011.

http://www.printcan.com/news/2013/20130731626.shtml