Supre­mex lays off 41 em­ploy­ees at en­ve­lope fa­cil­i­ties

Stockwatch Daily - - INDUSTRIALS & MATERIALS - Mr. Ste­wart Emer­son re­ports

SUPRE­MEX INC. plans to re­duce op­er­at­ing ex­penses at its Cana­dian en­ve­lope op­er­a­tions to im­prove re­source al­lo­ca­tion and fur­ther sup­port the com­pany’s diver­si­fi­ca­tion strat­egy into the grow­ing pack­ag­ing mar­ket. Supre­mex is re­duc­ing its Cana­dian en­ve­lope fa­cil­i­ties head count by a to­tal of 41 em­ploy­ees, or ap­prox­i­mately 8 per cent of its Cana­dian en­ve­lope work force. These mea­sures will re­sult in an­nual cost re­duc­tions of ap­prox­i­mately $2.7-mil­lion, be­fore taxes, which will pro­gres­sively ma­te­ri­al­ize in the cur­rent quar­ter and will take full ef­fect in 2019. A one-time charge of ap­prox­i­mately $1.4-mil­lion, be­fore taxes, will be recorded in the com­pany’s 2018 fourth quar­ter re­sults.

“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,” com­mented Ste­wart Emer­son, pres­i­dent and chief ex­ec­u­tive of­fi­cer of Supre­mex.

About Supre­mex Inc.

Supre­mex is a lead­ing North Amer­i­can man­u­fac­turer and mar­keter of en­velopes and a grow­ing provider of pack­ag­ing and spe­cialty prod­ucts. Supre­mex op­er­ates 12 fa­cil­i­ties across seven prov­inces in Canada and three fa­cil­i­ties in the United States em­ploy­ing ap­prox­i­mately 830 peo­ple.

We seek Safe Har­bor.

Ni­cole Boivin, Ste­wart J Emer­son, Robert Bruce John­ston, Ge­orges Ko­bryn­sky, Dany Paradis, Steven P Richard­son, An­drew I Sul­li­van, War­ren Joseph White

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