Quebecor World Announces Reorganization of its U.S. Book Platform
Press release from the issuing company
MONTREAL--July 2, 2004-- Quebecor World today announced that it is embarking on a significant reorganization of its U.S. book platform that will improve customer service, maximize asset utilization and increase efficiency. Selected equipment from the Company's Kingsport, Tennessee book facility will be decommissioned or redeployed into existing locations. The remaining assets in Kingsport will be refocused and specialized to better service the customer base.
Today's announcement is part of a long-term strategic plan that will include additional investments in new technologies specifically designed to meet the current and future needs of publishers. These investments together with increased specialization, will allow Quebecor World to deliver industry-leading, top-quality service at all its book plants.
This plan will result in a workforce reduction in Kingsport of approximately 450 positions but the Company also expects to create almost 280 new jobs at its other U.S. book facilities once new equipment is in place and the existing assets have been relocated. Employees will be encouraged to apply for the new positions created at other facilities or for positions elsewhere in the Quebecor World network.
As part of its efforts to improve efficiencies Quebecor World is also announcing today that it has entered into negotiations with its employees' representatives at its facility in Stockholm, Sweden with regard to the facility's future. This facility has struggled financially during the last several years and there is a strong possibility that the current negotiations will lead to a reorganization of our Nordic gravure platform that could involve the closing of the Stockholm plant.
The reorganization of the U.S. book platform, combined with the announcement in May of the Company's intention to close its magazine printing facility in Effingham, Illinois, and the possible reorganization of Quebecor World's Nordic gravure platform would result in restructuring charges in the range of $80 million. Approximately one-half of that amount will be recorded in the second quarter of 2004, while the remainder may be recorded during the next 12 months.
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