Quad/Graphics to close two more plants this year

Printing

Sussex-based Quad/Graphics Inc. announced in its earnings call this morning that it will close two more plants by the end of the year, in East Greenville, Pa. and Augusta, Ga.

Printing

There are about 400 employees at the East Greenville plant, which prints magazines and catalogs. There are about 250 employees at the Augusta plant, which prints retail advertising inserts and catalogs.

The work from those plants will be moved to other Quad facilities around the country. Some of the work will be moved to Wisconsin, but it was unclear how many jobs will be created here.

“We value the talents and contributions of employees impacted by today’s announcement,” said Claire Ho, a spokesperson for the company. “Quad/Graphics needs skilled, dedicated employees for job openings in a number of our plants where we are consolidating work, including here in Wisconsin. Therefore Quad/Graphics will help employees who are willing to relocate take advantage of other opportunities within the company.”

Those who do not transfer to other plants will be laid off, and are eligible for a separation package that includes pay, extension of health care benefits and career outplacement assistance, Ho said.

Quad is also in the process of winding down work at its Loveland, Colo. and Enfield, Conn. plants, which it announced it would close in August. Those will result in about 197 layoffs.

“By the end of this year, we will have closed 31 plants since the July 2010 World Color acquisition,” said Joel Quadracci, chairman, president and chief executive officer.

The closures are part of a plan Quad announced in its earnings report yesterday to reduce costs by $100 million. Also part of the plan are the reduction of selling, general and administrative expenses, an increased focus on productivity, and a recent organizational structure change.

Quadracci discussed the steps as part of the plan to transform the company, which will include a continued focus on strengthening its core print categories, generating significant free cash flow, and expanding its presence in the packaging industry.

“I’d like to thank our employees for all their hard work and dedication, especially today during our busiest quarter,” he said. “At Quad, we have always been about finding a better way, and that’s especially true when times get tough. This time will be no different.”

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Molly Dill, former BizTimes Milwaukee managing editor.

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