December 1, 2020 By PrintAction Staff
Supremex, a North American envelope manufacturer and provider of paper-based packaging solutions, has announced that it will be closing its Edmonton facility and reducing its Canadian envelope facility employees by 39, which will account for approximately five per cent of its total workforce.
These measures will result in approximately $2.4 million, before taxes, in annual cost reductions, which will begin to materialize in the current quarter and throughout the first three quarters of 2021 as operations cease in Edmonton. A one-time charge of approximately $2.5 million, before taxes, will be recorded in the company’s Q4-2020 results.
“We deeply regret the effect that these measures will have on employees and their families, and wherever possible, we have worked with them on early retirement possibilities,” said Stewart Emerson, president and CEO of Supremex. “These cost-saving initiatives will allow us to limit the impact of the pandemic and ongoing secular decline on our legacy envelope business and realize synergistic opportunities resulting from our February 2020 acquisition of Royal Envelope. As stated previously, our focus in 2021 will remain on extracting operational leverage, profitably grow our packaging platform and creating shareholder value.”
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