Quad/Graphics, Inc. announced on August 5 that it will close a number of plants as part of its ongoing integration plans. The company expects operations to cease at the following plants by the end of 2010: Clarksville, Tenn.; Corinth, Miss.; Lebanon, Ohio; Reno, Nev.; and Dyersburg, Tenn. The Dyersburg plant had been previously announced for closure in the first quarter of 2011 by World Color Press Inc.; however, Quad/Graphics will accelerate its closure to this fall.
"Today's announcement is a major step in integrating operations and creating the most efficient and modern manufacturing platform in the industry, said Joel Quadracci, CEO of Quad/Graphics. "Through this plan, more clients will benefit from our industry-leading technology and automation, while continuing to receive top-quality, on-time services."
The five plants announced for closure encompass nearly 2.7 million square feet and employ a total of approximately 2,200 employees. Most of the equipment housed in the plants will be shut down and scrapped, thereby permanently removing excess capacity. Quad/Graphics will consolidate work into plants with the most efficient and competitive platforms.
The company said it is on target to achieve approximately $225 million in pre-tax net annualized synergies within 24 months of closing on its transaction with Worldcolor.
