Supremex Announces Plan to Optimize Costs at its Envelope Platform to Further Support Diversification into Packaging
MONTREAL–Supremex Inc. the manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, today announced a plan 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
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Supremex is reducing its Canadian envelope facilities headcount by a total of 41 employees, or approximately 8% of its Canadian envelope workforce. 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”, said Stewart Emerson, President & CEO of Supremex.
Supremex Inc. is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions. Supremex operates 12 facilities across seven provinces in Canada and three facilities in the United States employing approximately 830 people. Supremex’ growing footprint allows it to efficiently manufacture and distribute paper and packaging solutions designed to the specifications of major national and multinational corporations, resellers, government entities, SMEs and solutions providers.