Supremex Announces Optimization Initiatives in the Packaging Segment
17 Octobre 2023 - 3:00PM
Supremex Inc. (“Supremex” or the “Company”) (TSX: SXP), a
leading North American manufacturer and marketer of envelopes and a
growing provider of paper-based packaging solutions, announced
today optimization initiatives aimed at improving operational
efficiency and achieving synergies within its Packaging and
Specialty Products segment. These initiatives are expected to
result in annual cost savings of approximately $1.5 million once
all measures are implemented.
First, the Company is closing its
Saint-Hyacinthe facility, acquired as part of the Impression
Paragraph Inc. transaction completed earlier this year. Production
of packaging products carried out in Saint-Hyacinthe will be
transferred to existing packaging facilities in the Montreal area.
The facility employs 28 workers, some of which could be relocated
within the Company’s existing operations. In connexion with this
announcement, Supremex will record a non-recurring restructuring
charge of approximately $2.8 million before taxes in its
fourth-quarter financial results.
Supremex also announces the departure of Simon
Provencher, President of the Packaging segment. Following his
departure, the Company revamped its Packaging management structure
under which three general managers will be responsible,
respectively, for folding carton, e-commerce, and the commercial
printing activities. They will report directly to the President and
Chief Executive Officer.
“We are proactively positioning our Packaging
and Specialty Products activities to benefit from solid underlying
growth in most of their target markets,” said Stewart Emerson,
President and CEO of Supremex. “Transferring folding carton
production to existing facilities will significantly increase
operating efficiencies, and synergy achievement across our
operations. We regret the impact that this decision could have on
affected employees and their families. Meanwhile, the new
management structure will enhance our capacity to drive additional
value in each sector of activity and maintain proximity with our
customers. We sincerely thank Simon for his contribution to the
expansion of our packaging activities, and we wish him the very
best in his future endeavors.”
About Supremex
Supremex is a leading North American
manufacturer and marketer of envelopes and a growing provider of
paper‑based packaging solutions. Supremex operates ten
manufacturing facilities across four provinces in Canada and six
manufacturing facilities in four states in the United States
employing over 1,000 people. Supremex’ growing footprint allows it
to efficiently manufacture and distribute envelope and packaging
solutions designed to the specifications of major national and
multinational corporations, direct mailers, resellers, government
entities, SMEs and solutions providers.
For more information, please visit
www.supremex.com.
Contact: |
François
Bolduc |
Martin Goulet,
M.Sc., CFA |
Chief Financial Officer |
MBC Capital Markets Advisors |
investors@supremex.com |
mgoulet@maisonbrison.com |
514 595-0555, extension 2316 |
514 731-0000, extension 229 |
Supremex (TSX:SXP)
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