MATTOON — LSC Communications Inc. announced on Tuesday that it plans to close its manufacturing facilities in Mattoon, as well as in Strasburg, Virginia, and Glasgow, Kentucky, by July as the company said it continues to focus on manufacturing footprint optimization to align with industry trends.
Chicago-based LSC said in a press release that these actions will strengthen the company’s manufacturing platform by significantly reducing costs and improving utilization across its production facilities. The streamlined platform will enable the company to continue providing the industry’s highest levels of quality and service to publishers of magazines and catalogs.
Mattoon's LSC facility, previously known as R.R. Donnelley, is located along north U.S. Route 45 and celebrated its 50th anniversary in 2018. This facility had been issuing employee hiring announcements as recently as this week and had been partnering with Lake Land College on a fast track training program for prospective new employees.
The plant has 750 employees and is the largest industrial employer in Coles County, according to information on the website of Coles Together, the county economic development organization. Overall, LSC trails only Sarah Bush Lincoln Health Center, Eastern Illinois University and Lake Land College with the most employees, according to Coles Together.
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Chairman, Chief Executive Officer and President Thomas J. Quinlan III said LSC continues to take actions to capitalize on its greatest value drivers while optimizing our platform to efficiently and effectively deliver the best products and services for its clients.
“The actions we announced (Tuesday) represent another step in our proactive efforts to address the significant structural changes in the industry. With many print titles moving to a fully digital platform, decreasing their frequencies, page and/or run counts, or closing entirely, our strategy is to further align our platform with these industry trends," Quinlan said.
"This strategy is consistent with our company wide platform consolidation and cost savings initiatives over the last several months as we take important and necessary steps to strengthen LSC’s operational and financial position. As a leading producer of magazines and catalogs in the United States, we are continuing to serve all of our clients with the same quality and service in everything we do.”
Since the announcement of the termination of LSC’s merger agreement with Quad/Graphics in July, LSC reported that it has taken a series of actions to strengthen the company’s operational and financial position.
Including Tuesday's announcement, LSC reported that it will have closed a total of eight facilities across various business segments and reduced its workforce by approximately 2,500 employees.
Additionally, the company reported that it has undertaken other actions to strengthen its position, including the implementation of new capabilities to enhance its industry-leading cooperative mailing solutions, relocation of key equipment, an increased focus on technology solutions for specific markets and strategic changes to LSC’s supply chain to reduce working capital requirements.
“It is always difficult to make business decisions that impact our employees and the communities in which we operate, and we are committed to supporting employees impacted by these closings with severance packages and transition assistance as well as potential relocation opportunities," Quinlan said.
R.R. Donnelley & Sons Co. built the plant on about 195 acres three miles north of Mattoon at a cost of $16 million in 1967. It was designed to print Family Circle Magazine and later handled the printing, binding and wrapping of books and catalogs.
Additional information was provided by Dave Fopay, firstname.lastname@example.org.
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