Quebecor World closing U.S. plant, cutting 600 jobs
Press release from the issuing company
MONTREAL--May 13, 2004-- Quebecor World announced today a reorganization of its U.S. magazine platform to improve asset utilization and enhance efficiency. Selected equipment from the Company's Effingham, Illinois magazine printing facility will be relocated to other plants in Quebecor World's U.S. magazine offset network.
This decision is necessary for Quebecor World to be able to maintain its leadership in the increasingly competitive North American print market. Today's announcement is the first step in a significant reorganization of the Company's U.S. magazine offset platform that will include additional investment in new technologies. These investments will improve customer service by increasing flexibility and reducing turnaround times.
Unfortunately this plan will also result in the closing of Quebecor World's Effingham facility. The closure will affect approximately 600 employees when it is fully completed by the end of 2004. However, the Company expects to create almost 200 new jobs at several of its U.S. facilities, once the equipment relocation is implemented.
Quebecor World is fully aware that this will be a difficult time for many of its employees. They will be eligible for severance benefits and Quebecor World will provide outplacement services to ease their transitions. Employees will also be encouraged to apply for the new jobs that are being created at our other facilities or for positions elsewhere in the Quebecor World network, so they can continue to apply the skills they have developed.
Quebecor World will be taking a restructuring charge in the range of $25 million as a result of this announcement. Details of the charge will be included in the Company's second quarter results.
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