Consolidated Graphics Combines Plants
HOUSTON—In an attempt to reduce costs and improve operating efficiencies, Consolidated Graphics announced that it has combined the sales and printing operations in three under-performing locations into larger nearby facilities.
A new strategic alliance has been negotiated for a fourth location, and the company expects to incur a special fourth quarter charge as a result, in the $4 million to $5 million range, after taxes.
"Combining sales and printing operations in three of our markets enables us to serve customers much more efficiently," states Charles F. White, president and COO. "As the combined businesses were in close proximity, we now can provide the local service and feel that our customers want, while offering them much broader printing capabilities than before.
"Additionally, as a result of this consolidation, the company will benefit from increased manufacturing and cost efficiencies," he adds.
The company also announced a strategic alliance between the financial printing operations of Chas. P. Young Co.—a wholly owned subsidiary of Consolidated Graphics—and the Financial Document Services business of Merrill Corp. The combined venture is called Merrill/CPY.
"This alliance combines the financial printing capabilities of two respected names," White remarks. "Merrill/CPY will prove to be a win-win situation for both companies and their customers."
According to White, Merrill will benefit from Chas. P. Young's customer base, state-of-the-art facilities and reputation as a high-quality printer, while Chas. P. Young will gain Merrill's worldwide typesetting and office network, which is able to support working groups in Merrill locations throughout the world.