Challenges Are Ahead For PAA, Wallace
Additionally, two facilities in Elk Grove Village, IL, a kitting/fulfillment center and a targeted communications manufacturing operation, will be closed. These operations will be consolidated within other plants in that state.
A multiple-use facility in Lodi, CA, will be phased out and closed over the coming months, with its production and distribution operations moved to other existing plants in the state.
"We can no longer accept the under-performance of our commercial print division," states Mike Duffield, president and COO of Wallace. "Commercial print continues to be an important part of our strategy. These moves will strengthen capabilities in our strategic locations and put greater focus on contract business.
"Combined with emphasizing contract business, we intend to get our profits to the levels we know that we can achieve," he adds.
The restructuring is expected to result in annual cost savings of roughly $13 million. Operating leaders have also identified approximately $20 million in cost reduction opportunities in various areas.
Wallace, which employs more than 8,000 workers, ranked seventh on the Printing Impressions 400 with $1.7 billion in annual sales.