Quad to Strengthen Canadian Platform with $23M Investment, Plant Consolidation

SUSSEX, WI—Oct. 6, 2010—Quad/Graphics, Inc. announced plans for investing in and restructuring its Canadian operations to create a more efficient, flexible manufacturing platform that delivers enhanced value to customers. 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 & CEO. “This strategic investment will improve our platform and is a big step toward strengthening our position in Canada.”

$23 Million Investment
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.

“We are excited by how quickly the company has committed to investing in the Canadian platform, which is characterized by plants strategically located across the entire nation,” said Philippe Cloutier, President of Quad/Graphics in Canada. “We are strengthening our capabilities today to better serve retailers and publishers for years to come.”

St. Jean Plant Closing
The St. Jean plant 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 proactively 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; Montréal, 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.

Edmonton Plant Focus
The company will dedicate the Edmonton facility to producing retail inserts and directories, capitalizing on the plant’s superior manufacturing and distribution capabilities in these segments. Magazine and other commercial work currently produced in the Edmonton plant 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.

“While we are very focused on integrating operations and achieving synergies, we are also focused on finding ways to better serve our clients and help them grow and succeed in the Canadian marketplace,” Quadracci said. “We have more solutions than ever to help clients capitalize on the power of print as part of a multichannel communications strategy.”

About Quad/Graphics
Quad/Graphics (NYSE: QUAD) is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts and circulars, direct mail products, books and directories. Headquartered in the United States in Sussex, Wisconsin (just west of Milwaukee), the company has approximately 28,000 employees working from locations throughout the United States, Canada, Latin America and Europe. As a printing industry innovator, Quad/Graphics (www.QG.com) is redefining the power of print in today’s multimedia world by helping its clients use print as the foundation of multichannel communications strategies to drive their top-line revenues.

Source: Company press release.