IOWA (From news reports) -- Quad Graphics Printing has announced it will be closing its Waukee plant in January because of reduced demand for printed directories.
The company's announcement on Iowa's Worker Adjustment and Retraining Notification, or WARN, website states the Waukee facility will shut down Jan. 10, idling 88 workers.
In an emailed statement, Quad Graphics said the decision to close the printing plant in Waukee, which specializes in the printing of directories, was driven by the reduced usage of printed directories as consumers rely more on accessing information through mobile devices. The statement did not specify the kind of directories Quad publishes.
"The decision to close the plant reflects these pressures and is part of the company's ongoing strategy to optimize its platform by consolidating print work into plants that offer the greatest manufacturing and distribution efficiencies, and overall value to its clients," the statement said, adding that the printing currently done in Waukee will be absorbed into its Sussex, Wisconsin, plant.
The statement also praised the quality of its workforce in Waukee.
"This decision in no way reflects the quality and performance of Quad's Waukee employees, all of whom have performed well and worked hard to make the location succeed," the statement said.
For full-time employees in Waukee who are represented by the Printing Packaging &Production Workers Union of North America, the collective bargaining agreement provides for severance pay in the event of a plant closure and the company will be meeting with union representatives soon to discuss how this plant closure decision will impact them.
Full-time employees who are not covered by a collective bargaining agreement have been offered a comprehensive separation package that includes separation pay, continuation of health care benefits and career transition assistance through a career counseling company, according to the statement.
The global marketing company, based in Sussex, employs about 13,000 people in 14 countries and serves about 2,700 clients, according to its website.
The closing of the Waukee plant follows a Quad Graphics announcement Oct. 22 that it is selling the majority of its European operations for around $45 million to a German-based private capital manager, according to a news release on its website.
Quad expects to use the proceeds from the sale to reduce debt and make further investments that advance its global marketing "consistent with its commitment to drive shareholder value," according to the release.