Supremex Inc. will be closing its Edmonton facility and reducing its Canadian envelope facility headcount by a total of 39 employees, or approximately 5% of its total workforce. These measures will result in annual cost reductions of approximately $2.4 million, before taxes, which will begin to materialize in the current quarter and throughout the first three quarters of 2021 as operations wind down in Edmonton. A one-time charge of approximately $2.5 million, before taxes, will be recorded in the company's 2020 4Q results.
"We deeply regret the effect that these measures will have on employees and their families, and wherever possible, we have worked with them on early retirement possibilities," said Stewart Emerson, President & CEO of Supremex. "These cost saving initiatives will allow us to limit the impact of the pandemic and ongoing secular decline on our legacy envelope business and realize synergistic opportunities resulting from our February 2020 acquisition of Royal Envelope. As stated previously, our focus in 2021 will remain on extracting operational leverage, profitably grow our packaging platform and creating shareholder value".
Supremex is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions.
