Quebecor World shuts Quebec plant, 300 jobs lost

Mon Mar 31, 2008 12:03pm EDT
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TORONTO (Reuters) - Quebecor World, the big commercial printer that is restructuring under court protection from creditors, said on Monday it is closing a plant in the Canadian province of Quebec, resulting in about 300 lost jobs.

The Magog plant, which started operations in 1971, produced magazines and retail inserts, the company said. Currently, it is running at only 20 percent capacity because of seasonally weak demand.

Some 200 full-time employees at the plant are already on temporary layoff, Quebecor World said, and that will now be made permanent.

It said the closure is part of its worldwide retooling program, which it started three years ago and which it is due to finish this year. The plan calls for investments in new technology in fewer but larger plants.

The company also announced on Monday it has signed renewal and new business deals with magazine clients that will add 33 new specialty titles to its platform.

Quebecor World, which filed for protection from creditors in late January, is controlled by Montreal-based publishing and media group Quebecor Inc.

Quebecor World shares fell 3 Canadian cents to 12 Canadian cents on the Toronto Stock Exchange on Monday morning.

($1=$1.02 Canadian)

(Reporting by Wojtek Dabrowski; Editing by Peter Galloway)