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R.R. Donnelley To Expand Lancaster Complex, Part of Overall $300 Million Investment

Press release from the issuing company

LANCASTER, Pa., June 26 - To achieve its goal of revolutionizing communications effectiveness, R.R. Donnelley & Sons Company will expand its Lancaster, Pa., manufacturing complex. The expansion is part of the company's previously announced $300 million investment to create the most cost-effective, integrated and flexible print "platform of the future'' for its customers. Value of the expansion was not disclosed. "I am pleased to report news that will have a positive long-term effect on our customers, our business and our community,'' said Michael J. Winn, senior vice president of operations and director of R.R. Donnelley's Lancaster Division. Groundbreaking is expected to occur on July 16, 2001, for the 76,000- square-foot addition to the existing Lancaster complex, with construction scheduled to be completed by year-end. The expansion will add new state-of- the-art printing and associated binding equipment, along with high-quality equipment to be transferred from the company's Old Saybrook, Conn., plant, which will close by July 2002. "With these new capabilities, we'll be able to serve our customers more effectively and efficiently in partnering with them to target their customers, eliminate waste, leverage our logistics business, reduce total delivered cost, and build their businesses and brands. And, this ensures a healthy future for print -- and for our employees,'' Winn added. Approximately 100 new jobs are expected to be created as a result of the expansion. Many of the positions will be filled by new employees, while some are expected to be transfers from the company's Old Saybrook plant. The opportunities will include entry-level, craft, technical, support, professional and managerial positions. "In integrating our Old Saybrook operations and production into the Lancaster complex, customers will benefit from greater speed to market, flexibility, consistently high quality and performance, and purchasing and distribution efficiencies,'' explained Winn. "And, they'll have access to Lancaster's industry-leading Premedia Center, a broader range of equipment and enhanced electronic transmission capabilities.'' R.R. Donnelley has had a presence in Lancaster since 1959, when the company purchased Rudisill Printing Company and began producing catalogs, magazines and telephone directories. A second plant opened in 1972, a third in 1980. This is the sixth major expansion project for the company's Lancaster complex. R.R. Donnelley employs 3,400 people in Lancaster.