IWCO Plans $5.5M Expansion

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Direct mail service company IWCO Direct plans a 35 percent increase to its lettershop capacity and other improvements in a $5.5 million expansion, the company said yesterday.

IWCO Direct, Chanhassen, MN, said it is spending $4 million on high-speed mailing equipment including affixers, embossers, bindery lines and inserters. The purchase also includes the company's fifth Siemens Dematic Delivery-Point Bar Code Sorter -- the same used by the U.S. Postal Service -- to increase its commingling capacity.

The new equipment will improve cycle times while supporting complex personalization models, IWCO said. Increased volumes resulting from the additional production capacity will help the company bring its customers better postage discounts, and customers who use its commingling and logistics program will enjoy increased penetration into USPS sectional center facilities, the company said.

IWCO will spend the other $1.5 million on support technology upgrades. These include data processing, personalization and proofing technologies. The expansion will begin in July and be completed by December, the company said.

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