Troubled printer Quebecor World Inc. is closing its Magog, Quebec, facility, which produces magazines and retail inserts for the US and Canadian markets.
The company said in a statement that the closure is part of its global retooling and restructuring program begun three years ago. The program, which is scheduled to be completed this year, is designed to reduce costs and improve productivity by consolidating volume in larger, more efficient facilities.
The Magog facility is currently operating at 20% of its capacity due to reduced demand at this time of year, according to the company. Quebecor will begin closing down the facility immediately, resulting in the loss of approximately 300 full-time positions. An additional 200 full-time employees on temporary layoff will also be permanently let go. The Magog facility began operations in 1971.
Since filing for bankruptcy protection in January, Quebcor World has lost one lucrative printing contract and is facing the possible loss of another.
Last month, Quebecor lost its contract with Rogers Communications Inc. Rogers’ more than 70 titles include Chatelaine, Maclean’s and Canadian Business; it went on to sign a six-year, $210 million agreement with Transcontinental Inc. Earlier this month, The Economist gave Quebecor World notice that it may want to opt out of its printing contract when the agreement expires in September. Quebecor has reported winning and renewing other contracts worth $75 million.