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Montreal, May 16, 2006 –
Transcontinental announced today plans to combine its commercial
printing and direct-marketing facilities in the Toronto area.
The equipment at Transcontinental O’Keefe Toronto, where
the lease was set to expire, will gradually be transferred
to the Transcontinental Direct Toronto facility by the end
of September.
The management team of Transcontinental’s Marketing
Products and Services sector met first with employees at the
plants this morning to explain the reasons and timetable for
the consolidation. The majority of Transcontinental O’Keefe
Toronto’s 50 employees will be transferred to the Transcontinental
Direct Toronto facility. Every effort will be made to support
the employees given notice today at the two plants –
11 at Transcontinental O’Keefe Toronto and 12 at Transcontinental
Direct Toronto, which now has 225 employees. The affected
employees will receive severance payments and outplacement
counselling exceeding legal requirements.
“Transcontinental has a reputation of being responsible
and fair to its employees, and we will live up to this reputation,”
said Guy Manuel, president of the Marketing Products and Services
sector, to the employees. “I want to stress that this
decision in no way reflects the quality of work that you have
done here, which is excellent, nor was it an easy one to make.
It was made strictly on the basis of a sound business case
to keep Transcontinental competitive and thereby protect the
maximum number of jobs in the company as a whole.”
The Canadian commercial printing industry – that is
brochures, annual reports, posters, etc. – remains highly
competitive because of lower demand in certain product categories
as well as overcapacity due to the strengthening of the Canadian
dollar and low barriers to entry into this market segment.
“While Transcontinental is outperforming in other printing
niches,” explained Mr. Manuel, “our commercial
printing operations in Ontario required further consolidation
to realize similar economies of scale and efficiencies.”
Today’s announcement will bring more products and services
together under one roof, giving customers the opportunity
to choose from a greater variety of communication tools such
as direct marketing, database management and more, all while
maintaining the excellent service for which Transcontinental
is known.
Profile
The largest printer in Canada and seventh in North America,
Transcontinental is also the country’s leading consumer
magazine publisher and second-largest community newspaper
publisher. Transcontinental distinguishes itself by creating
strategic partnerships that integrate the company into its
customers’ value chain, notably through its unique newspaper
printing outsourcing model and its value-added services. From
mass to highly personalized marketing, the company offers
its clients integrated solutions which also include a diverse
digital platform and a door-to-door distribution network of
advertising material. Transcontinental is a company whose
values, including respect, innovation and integrity, are central
to its operation.
Transcontinental (TSX: TCL.A, TCL.B) has more than 14,000
employees in Canada, the United States and Mexico, and reported
revenues of C$2.2 billion (US$1.9 billion) in 2005.
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For Information:
Transcontinental
Media
Jake Brennan
Media Relations Coordinator
Transcontinental Inc.
Telephone: (514) 954-4000
jake.brennan@transcontinental.ca
Financial Community
Stéphane Milot
Director, Public and Investor Relations
Transcontinental Inc.
Telephone: (514) 954-2821
stephane.milot@transcontinental.ca
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