Supremex Inc., headquartered in the Montreal community of LaSalle, today announced a plan to reduce operating expenses at its Canadian envelope operations as it works to diversify its business to include more packaging products.
The manufacturer of envelopes and provider of paper-based packaging solutions says it intends to cut 41 employees at its Canadian envelope manufacturing facilities – approximately 8 percent of its Canadian envelope workforce – resulting in annual cost reductions of approximately $2.7 million before taxes. A one-time charge of approximately $1.4 million, before taxes, will be recorded in the company’s 2018 fourth quarter results, Supremex says.
“We regret the effect that these measures will have on employees and their families, and wherever possible, we have transitioned employees to our packaging business and worked with them on early retirement possibilities. These cost cutting measures were necessary to improve operational efficiency and improve both competitiveness and profitability in our envelope business as we continue to prudently deploy resources into our packaging activities,” said Stewart Emerson, President and CEO of Supremex.
The company currently operates 12 facilities across seven provinces in Canada and three facilities in the United States.
This past May, Supremex completed the acquisition of Groupe Deux Printing (G2) and its related company Pharmaflex Labels Inc. of Laval, Que., saying the deal was concluded for total cash consideration of $11.25 million on a cash-free and debt-free basis subject to customary adjustments for working capital and other items.
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