Quad Investing $23M in Canadian Ops; 300 Lose Jobs

SUSSEX, WI—Quad/Graphics is investing $23 million in restructuring its Canadian operations, closing a plant in Quebec and shedding more than 300 jobs as it seeks to create a more efficient, flexible manufacturing platform.

The company intends to make an initial $23 million investment in its infrastructure and manufacturing platform within the next year, close the St.-Jean-sur-Richelieu printing plant in Quebec, and refocus the Edmonton, Alberta, plant operations on serving retail insert and directory clients exclusively.

"We are committed to Canada and are structuring our operations to deliver the best quality on the most efficient and flexible manufacturing platform coast to coast and nearest to our customers’ end users," said Joel Quadracci, Quad/Graphics chairman, president and CEO. "This strategic investment will improve our platform and is a big step toward strengthening our position in Canada."

The company’s planned multimillion-dollar investment in its Canadian manufacturing platform will be focused on upgrading equipment to further advance quality and turnaround times, as well as infrastructure improvements. The company also plans to invest in its people, providing enhanced training and education for continuous improvement.

In addition, Quad/Graphics is bolstering its cross-media marketing services to help Canadian retailers, publishers and other advertisers extend a consistent brand message across multiple print communication channels, and integrate those channels with other forms of media, such as the Internet, mobile technologies and digital tablets like the iPad. The printer’s comprehensive services for the Canadian marketplace range from design concept to layout and photography; workflow tools for automating page production; extensive versioning capabilities to give advertisers the ability to precisely target messages; and creative outputs, including large-format signs and in-store/point-of-purchase (POP) materials; in addition to flyers, inserts, magazines, catalogs, direct mail, books and directories.

The St. Jean facility will begin stepping down operations immediately and the company expects to cease production by the end of this year. The plant encompasses nearly 240,000 square feet and employs approximately 270 people. Client work will be transitioned to other, more efficient plants within Quad/Graphics’ existing network of facilities. The company will assist impacted employees in finding new jobs, including those available at other Quad/Graphics locations.

Following the closure, the company will have eight printing plants in Canada: in Dartmouth, Nova Scotia; Montreal, St. Laurent and LaSalle, Quebec; Aurora and Concord, Ontario; Edmonton, Alberta; and Vancouver, British Columbia, as well as a fully integrated premedia facility in Toronto that offers prepress, photography and creative services.

The company will dedicate the Edmonton facility to producing retail inserts and directories, capitalizing on the plant’s manufacturing and distribution capabilities in these segments. Magazine and other commercial work currently produced there will be transferred to the company’s Aurora, Ontario, facility, which is well-equipped for high-quality and timely magazine production. The transition of work between the two facilities is expected to occur within the next 30 days. As a result, approximately 30 employee positions will be eliminated in Edmonton.