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QuadWinkowski to consolidate operations

Thursday, June 17, 2010

Press release from the issuing company

Wyszków, Poland – QuadWinkowski, the Poland-based printing enterprise owned by Quad/Graphics, today announced that it will strengthen its position as a leading European printer by consolidating its operations into one, large-scale production facility. By consolidating its Pi?a production operations into its Wyszków plant, the company will drive increased operational efficiencies while giving its magazine and catalog clientele an expanded range of capabilities from a single location.

The company will move the majority of the Pi?a plant’s high-speed web offset presses and binding equipment to Wyszków. The presses' cutoff sizes complement the capabilities already installed at the Wyszków plant, adding to the facility’s manufacturing flexibility. Redundant, underutilized capacity will be shut down.

The company will begin equipment relocations in July and will complete all moves by the end of the year. At that time, the Pi?a facility will be permanently closed. The company will time the equipment moves so that it can meet all client commitments with no service interruptions.

“The consolidation is part of our ongoing strategy to create the best-run, most streamlined production platform on the European continent," said Joel Quadracci, Chairman, President & CEO of Quad/Graphics. "At 721,000 square feet, the Wyszków plant's size is similar to plants we operate here in the United States, which are better suited for the efficient flow of large volumes. Also, with the addition of Pi?a's leading-edge equipment to the Wyszków plant, we'll be able to offer the high-quality service and manufacturing platform flexibility our clients demand from a single location."

The consolidation will result in the elimination of employee positions. A number of Pi?a employees will be offered relocation packages to Wyszków, which is located 60 kilometers northeast of Warsaw and 380 kilometers east of Pila. Employees who are not eligible for a relocation package will receive a transition package that is subject to labor code and group dismissal regulations. A key component of the transition package is professional career outplacement services to help displaced employees find new jobs.

"We have talented, dedicated employees in Pi?a – employees who have been loyal to the company and to our customers for many years,” said Tom Frankowski, President of QuadWinkowski. “As difficult as this decision was, it is in the best long-term interest of the company and will go a long way toward strengthening our position in the industry.”




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