Monday, April 2, 2012

R.R. Donnelley to close Mendota (IL) plant

Anybody out there want an excellent deal on a large commercial printing plant?

Mendota is about a 2-hour drive west from Chicago.

By Alejandra Cancino — Chicago Tribune

Created: Friday, March 30, 2012 11:33 a.m. CDT

R.R. Donnelley and Sons Co. (NYSE: RRD) will close its Mendota printing plant at the end of May in a move that will affect 207 employees.

The pending closure will be devastating for the city, Mayor David Boelk said Thursday. Boelk said the company's announcement caught him off guard, adding that he learned about the closing on Wednesday when an employee called him in tears.

"I feel for all (the workers). There are quite a few families where both spouses work at the plant," Boelk said.

R.R. Donnelley is one of the largest employers in the city of 7,340 residents. As such, the closing will affect other businesses, including the local post office, which Boelk said was spared in the latest round of Postal Service closings because of the volume of mail generated by the plant. Boelk said he hopes to find a buyer for the plant that could rehire the workers.

The commercial printing company acquired the Mendota plant in 1992 after purchasing Combined Communication Services Inc., a magazine printer. Donnelley employs about 58,000 workers and makes store signs, labels, packaging, receipts, catalogs, coupons, direct mail, bills, books and magazines.

R.R. Donnelley has sought to adapt itself to an increasingly digital world in the last eight years. As part of that reorganization, it laid off 2,899 workers in 2011.

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Eleven years ago, RR Donnelly closed a 100,000 sq ft printing plant in St Petersburg, FL; I pass this printing plant on my way to/from the library in St Pete. Today, it’s a storage facility. That worked for St Pete, a city with a population of around 245,000. I seriously doubt that a large storage facility In Mendota would work, since there are less than 8,000 people residing in Mendota.

R.R. Donnelley to Close St. Petersburg Printing Facility

Press release from the issuing company

CHICAGO, February 5, 2001 -- R.R. Donnelley & Sons Company (NYSE: DNY) today announced it will close its St. Petersburg, Florida, telephone directory printing facility on February 16. "After careful review, we determined the facility, which is the smallest in our operation, lacks the scale necessary to support the current and future needs of our customers," said Ronald E. Daly, president, Telecommunications. "By consolidating our efforts and transferring St. Petersburg's workload to other facilities, R.R. Donnelley can further maximize operating efficiencies and more effectively meet our customers' needs." The St. Petersburg facility, which was acquired from GTE in 1998, employs 120 people. Daly said that after carefully and thoroughly reviewing the business under a variety of marketplace scenarios, the company determined that the best decision was to close the facility. "I want to emphasize that this decision is in no way a reflection on the hard work or dedication of our St. Petersburg employees. We will make every effort to assist affected employees during this difficult time as they plan for the future," said Daly. In addition to separation packages, R.R. Donnelley will offer job search assistance to affected employees. Products currently produced at the St. Petersburg facility will be transferred to other R.R. Donnelley plants. Some of the equipment will be moved to other R.R. Donnelley plants. The company plans to seek a buyer for the building.

In 2009, the former R. R. Donnelly Building at 111 18th Street South, St Petersburg, was renovated for $3.3 million into storage facilities. Now known as Lockup St. Petersburg, the 99,000 SF building offers storage opportunities for Downtown St. Petersburg and the surrounding residential market.

1 comment:

  1. I used to work at the plant in St. Petersburg. It seems like every time I read a trade publication, RRD is closing another plant. Does anybody know how many plants and how many jobs have been lost since 2000 due to RRD closings?