LSC Communications to Close Book Printing Plant in Virginia; 140 layoffs.


Thomas J. Quinlan III

LSC Communications workers and their families in Salem, Va. are unlikely to feel very festive this Memorial Day weekend.

That’s because Chicago-based LSC Communications filed a Worker Adjustment and Retraining Act (WARN) notification notice on May 22, stating that it intends to shut down its Salem-based business for good, in Virginia, 278,000 square feet. book factory in July and lay off the 140 or so workers who worked there.

The notice also said the layoffs were to begin July 23 and last for two weeks.

In a letter to Salem, Va., Mayor Randy Foley, R. Scott Bigelow, director of human resources for LSC Communications, wrote: “In connection with the closure of the plant, no employee will have the right to supplant other employees working for the company. … We appreciate any support or assistance you or your office can provide to help employees affected by the plant closure find new positions. Bigelow cited “changing market conditions” as the main impetus behind the closure of the plant, which is located at ValleyTech Park in Roanoke County.

According to Roanoke Times, RR Donnelley began the local operation in 1997. Salem, Va. Is a city of about 25,000 people, so obviously the closure and subsequent layoffs are a blow to the local community.

Jill Loope, director of economic development for Roanoke County, told the newspaper the county has hired a regional rapid response team to help displaced workers find new jobs, including training or educational assistance.

“It is unfortunate that the downturn in the commercial printing market has resulted in this action,” she said. “Our concern is with affected employees and our goal is to help them identify new employment opportunities.”

LSC Communications derived from RR Donnelley last October, when the $ 11.7 billion conglomerate split into three separate public companies: RR Donnelley, LSC Communications and Donnelley Financial Solutions. To read my commentary published at the time on what led to the breakup of RR Donnelley into three companies, click here.

Led by Chief Executive Officer Thomas Quinlan, LSC Communications reported a net loss of $ 1 million for the first quarter of 2017, including $ 17 million in interest expense related to its separation from RR Donnelley on October 1, 2016. Net sales for the first quarter of 2017 were $ 821 million, down $ 59 million, or 6.7%, from the first quarter of 2016. However, LSC Communications has reaffirmed its guidance for 2017 d ” Achieve $ 3.55 billion to $ 3.65 billion in annual sales and a non-GAAP Adjusted EBITDA margin of 9.75. at 10.25%.

LSC Communications was ranked number 3 out of the most recent Printing fingerprints 400 list of the largest printing companies in the United States and Canada by annual sales. His annual revenues were surpassed only by RR Donnelley, at $ 7 billion, and Quad / Graphics, to $ 4.68 billion. To access all PI Ranking 400 of the 400 best printing companies, click here.

Employing more than 20,000 workers, LSC Communications provides traditional and digital printing services, printing-related services and office products to publishers of books, magazines, catalogs and directories; merchants; and retailers, including newspaper inserts and coupons. Its service offering also includes electronic services, warehousing and fulfillment, and supply chain management. LSC Communications maintains operations in the United States, Canada, Mexico and Poland, including more than 50 production facilities.

Printing fingerprints has reached out to LSC Communications’ director of marketing communications for comment on the closing of the Salem, Va. book factory, but has not received a response at the time of this article’s publication.


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