Quad to Enhance Book Platform Through Investment and Consolidation

SUSSEX, WI—April 18, 2011—Quad/Graphics announced plans to invest in and restructure its book manufacturing platform to create production and distribution efficiencies, and deliver enhanced value to book publishing clients.

The company plans to invest more than $15 million over the next several months to strengthen its book manufacturing platform in Martinsburg, WV. This investment is in addition to previously announced capital expenditures to enhance its book-component manufacturing capabilities in Leominster, MA, as well as recent multimillion-dollar investments in digital press technology at the company’s Fairfield, PA, and Dubuque, IA, book facilities.

As far as platform restructuring, the company will close its Buffalo, NY, book facility in the fourth quarter of 2011. The action is part of the company’s ongoing process to integrate operations and remove excess and inefficient capacity following its July 2, 2010, acquisition of Worldcolor.

“Quad/Graphics is strengthening its offering and position as one of North America’s leading book printers,” said Joel Quadracci, Quad/Graphics chairman, president and CEO. “We recognize that the landscape is changing for book publishers and their interest in shorter runs and print-on-demand services is growing. To that end, we are adjusting our offering to be more responsive and flexible, and improve quality and turnaround times. We want to help book publishers be strong and competitive, especially as consumer preferences continue to evolve.”

Plant Closure
The Buffalo plant, which specializes in mass-market paperbacks, will begin stepping down operations immediately, and production is expected to conclude in the fourth quarter of 2011. Client work will be moved to the company’s Martinsburg, W.Va., and Leominster, Mass., facilities. The Buffalo plant encompasses approximately 830,000 square feet and currently employs approximately 400 people. The company will proactively assist impacted employees in finding new jobs, including those available at other Quad/Graphics locations.

“The plant closure is necessary to remove excess capacity from our platform and strengthen our overall competitive position, and in no way reflects on the performance of employees or the quality of service to clients,” Quadracci said. “The age and condition of the facility, and its current capacity utilization, make this action necessary.”

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