Quad Consolidates, Sheds 2,200 Jobs
SUSSEX, WI—The consolidation phase of the Worldcolor integration has begun at Quad/Graphics. Five plants will be closed by the end of 2010, resulting in the loss of roughly 2,200 jobs. Most of the equipment from those facilities will be shut down and scrapped, removing excess capacity.
The plants to be closed are in Clarksville, TN; Corinth, MS; Lebanon OH; Reno, NV; and Dyersburg, TN. The Dyersburg location had been slated by Worldcolor to close in the first quarter of 2011, but the timing has been moved up to this fall. The five facilities encompass nearly 2.7 million square feet of space in total.
The company expects to garner roughly $225 million in pre-tax net annualized synergies within 24 months of closing on its acquisition of Worldcolor.
“This 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 and CEO of Quad/Graphics, in a statement. “Through this plan, more clients will benefit from our industry-leading technology and automation, while continuing to receive top-quality, on-time services.”
Quad/Graphics plans to consolidate work into plants it feels have the most efficient and competitive platforms. The printer says it will also take an active role in aiding displaced workers in their search for employment, including opportunities at other Quad facilities.