Quebecor to Purchase 22 New Presses for U.S. Manufacturing Platform
Press release from the issuing company
MONTREAL--July 28, 2004-- Quebecor World today announced a major strategic capital investment plan that involves the purchase of 22 new presses for its U.S. manufacturing platform. The purchase of new wide-web 48, 64, 96 and 128 page presses will make Quebecor World the clear technological leader in the North American printing industry allowing it to renew and expand its customer base.
The investment is targeted at Quebecor World's magazine, catalog, retail and book platforms. The new equipment will dramatically improve efficiency and through-put as well as enhance customer service by providing publishers and retailers with a more complete integrated and flexible multi-plant manufacturing network.
"During the last year and a half we have made significant strides in reducing our cost base and putting our house in order. While this is an ongoing effort, we are now at the stage where we can confidently invest in our platform in a way that will provide maximum benefit to our customers and return for our shareholders," commented Pierre Karl Peladeau, President and CEO, Quebecor World.
"At Quebecor World our strategy is developed by assessing the market and listening to our customers. These investments are being targeted in areas where we see growth in the print market and where the new equipment can best serve the current and future needs of our customers," said Dave Boles, Chief Operating Officer, Quebecor World, North America.
Quebecor World will place a firm order for 12 new presses and an option for 10 others. The 12 presses will be commissioned in 2005 and 2006 at a cost of approximately $165 million. The additional 10 presses will be commissioned in 2006 and 2007 at a cost of approximately $165 million. The presses will be fitted with the latest robotic and automated systems to maximize efficiency. Quebecor World is also working with its customers to evaluate certain customers-driven enhancements to the machines including closed-loop color systems and ribbon control systems to further optimize quality and performance.
"This investment in new presses is being combined with the decommissioning of older, less efficient equipment which will improve our operating performance without significantly increasing capacity," added Mr. Peladeau.
The new presses will strengthen Quebecor World's multi-plant network offering by increasing the scope and geographic footprint of its wide-web offset technology. The Company's integrated network of facilities gives magazine, catalog, retail and book customers a flexible platform that enables them to reduce distribution costs and lead-times by printing closer to the end user.
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