Quad/Graphics, Inc. recently announced it will close a number of plants as part of its ongoing integration plans. The company expects operations to cease at the following plants by the end of 2010: Clarksville, Tenn.; Corinth, Miss.; Lebanon, Ohio; Reno, Nev.; and Dyersburg, Tenn. The Dyersburg plant had been previously announced for closure in the first quarter of 2011 by World Color Press Inc. (“Worldcolor”); however, Quad/Graphics will accelerate its closure to this fall.
“Today’s announcement is a major step in integrating operations and creating
the most efficient and modern manufacturing platform in the industry,” said
Joel Quadracci, Chairman, President & CEO of Quad/Graphics. “Through this
plan, more clients will benefit from our industry-leading technology and
automation, while continuing to receive top-quality, on-time services.”
The five plants announced for closure encompass nearly 2.7 million square feet
and employ a total of approximately 2,200 employees. Most of the equipment
housed in the plants will be shut down and scrapped, thereby permanently
removing excess capacity. Quad/Graphics will consolidate work into plants with
the most efficient and competitive platforms. It has developed a comprehensive
plan designed to smoothly transition client work between facilities.
The company will proactively assist impacted employees in finding new jobs,
including those available at other Quad/Graphics locations. “We value the
talents and contributions of employees impacted by today's announcement, and
want to help them with their career transition,” Mr. Quadracci said. “No plant
is closing because of employee performance or client service issues, but rather
because we are moving work to locations with the most efficient platforms for
serving our clients’ needs. To the extent possible, we’d like employees to
continue with the company and we will review transfer opportunities with them.”
Quad/Graphics is on target to achieve approximately $225 million in pre-tax net
annualized synergies within 24 months of closing on its transaction with
Worldcolor.
“While we are very focused on achieving synergies, we are equally focused on
serving our customers and building a foundation for future growth and success,”
Mr. Quadracci said. “Now more than ever we are innovative people redefining
print and we have the expanded resources and talent to help clients maximize
the effectiveness of print as part of a multichannel communications strategy. We
are excited about the future of print, our company and the industry.”
