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TC Transcontinental closes Quebec printing plants

Industrial
TSX:TCLA
18 June 2020 14:28 (EDT)
TC Transcontinental - President and CEO, François Olivier (Left)

Source: La Presse

TC Transcontinental (TSX:TCLA) is permanently closing the Transcontinental de la Capitale and Transcontinental Qualimax printing plants in Quebec.

The two plant closures will result in around 60 employees losing their jobs.

The company has closed the plants following Coopérative Nationale de L’information Indépendante revealing it will cease printing newspapers during the week.

TC’s Quebec plants printed Coopérative Nationale’s newspapers Le Soleil, Le Droit, Le Nouvelliste, Le Quotidien-Le Progrès, La Tribune and La Voix de l’Est.

When Coopérative Nationale first announced the printing changes earlier this week, TC placed the plants on temporary suspension, before announcing the definitive closer today.

With the plants closing, TC has moved the remaining publishing requirements to its Montreal facility, TC Transmag.

Pierre Deslongchamps, TC’s Senior Vice President of Québec and Atlantic Printing, believes the closures are necessary, given the circumstances. 

“This decision is part of our strategy of continuously optimizing our printing platform by adjusting our capacity and costs to our business volumes.

“We thank our employees affected by these closures for their exemplary work over the years and wish them the best of success in the future,” he said.

Coopérative Nationale cited a difficult industry environment brought on by the COVID-19 pandemic, as a contributing factor for the printing changes.

Similarly, TC’s market share has also seen a turbulent few months following the pandemic’s onset.

In the first three weeks of March, the company’s share price fell by almost half. Since then, however, the company has somewhat recovered and is now sitting at just 10 per cent lower than its pre-pandemic levels.

TC Transcontinental (TCLA) is down 0.89 per cent and is trading at C$14.40 per share.

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