Quad/Graphics Shuttering Plant in Kansas, 95 Jobs Impacted
SUSSEX, Wis. — February 24, 2016 — Quad/Graphics will be closing its plant in Lenexa, Kan., by the end of this month, the company revealed in an earnings call on Tuesday. The move will impact 95 employees.
The plant was obtained in the Vertis Communications acquisition in 2013. It is also the fourth closure by Quad in the wake of its third quarter financial shortfall, joining Pennsylvania plants in East Greenville and Atglen, as well as a facility in Augusta, Ga. The East Greenville and and Augusta shops were closed during the fourth quarter.
Dave Honan, executive VP and CFO, noted that the moves were part of an initiative to reduce $100 million from the printer's cost structure for 2016.
The work from these plants is being consolidated into what Honan characterized as mega-plant facilities. Claire Ho, company spokesperson, noted that with open capacity in the retail insert platform, the company needed to become more efficient.
"This is a strategic business decision," Ho said. "Quad/Graphics has open capacity in its retail insert platform from ongoing industry volume reductions. It makes sense to eliminate excess capacity in our platform by consolidating work into plants where we believe we can achieve the greatest manufacturing and distribution efficiencies. Our goal is to create the strongest, most competitive retail platform to continue serving our clients well into the future.
The company has offered transfer opportunities within the Quad network to the affected employees, with some having accepted positions at facilities in Wisconsin, Oklahoma and Florida, the Kansas City Business Journal reported. Those not interested in transferring were offered a separation package, including pay, extended health care benefits and job search assistance.