News Archives
April 2006

April 27, 2006
Supremex acquires assets of Montreal-based label company
MONTREAL—Envelope printer, Supremex Income Fund, has purchased the assets of a pressure-sensitive label company and will be installing a flexographic press from Italy-based manufacturer, Omet. The company says the label company and new press will add to its direct mail solutions and the employees taken on from the label business will provide enhanced flexo printing expertise. Supremex CFO Stephane Lavinge couldn’t reveal the name of the label company because it is still an independent entity, although Supremex has bought all of its assets.  

St. Joseph to lend employees to the community for a day
TORONTO—To mark its 50th anniversary and expand its philanthropic efforts, St. Joseph Communications is launching its first-ever Values in Action Volunteer Day. On May 17, St. Joseph employees will spend the day painting shelters, fixing up community centres, landscaping parks, preparing food for the homeless and other volunteer duties. “By giving associates the opportunity to volunteer during work time, we hope to make a real difference in our communities,” says executive chairman and CEO Tony Gagliano. The company sets aside 10% of its profits each year to the St. Joseph Family of Companies Foundation to be distributed to various charities.  

April 26, 2006
Paper price increases in effect, pulp companies working towards profitability
MISSISSAUGA, ON—Several manufacturers have announced paper price increases this month. Asia Pulp & Paper issued a statement this week announcing a 4%-6% increase in uncoated offset book and photocopy paper and anticipates that it may increase its coated text and cover products by 3-5% in June.The company attributes the higher prices to direct increases from the mill. Coast Paper also recently issued an increase notification on several products including, a 5%-8% increase on envelopes, a 6% increase on Husky offset, a 4% increase of Lynx Opaque, and a 3% increase on Cornwall coated cover, Domtar Opaque colours, and Tango coated cover and blanks. Weyerhaeuser is also on the list of companies announcing increases, stating that is raising prices $20-$30/tonne for northern bleached softwood kraft pulp. Also in the news this week, foresty company Tembec lost $168.2 million in the second quarter and is struggling with the high Canadian dollar and high costs. The company cites the price increase implemented in April as helping the pulp market improve. A recent report from said Canadian pulp, paper and forest companies experienced a sharp decline in earnings last year due to high energy costs, transportation, chemical costs, the exchange rate and limited pricing power. The nine publicly-traded Canadian pulp and paper companies lost a combined $505.9 million in 2005, compared with earnings of $160.8 million in 2004, despite growing sales in 2005. The report says improvements in profitability depend on individual restructuring plans that will implement cost savings, capacity rationalization, debt reduction, and repositioning of core businesses.  

Print Three targets independent printers
TORONTO—Print Three has converted an independent Winnipeg-based print owner since 1977 into a Print Three franchise owner; a first for the company. The owners, William Rendall, Ilene Rendall and Nicole Rendall purchased an existing Print Three location and converted their existing print shop into a Print Three Smart Document Centre. Print Three expects that reaching out to independent printers in Canada will be a key direction in expanding its reach and offerings. The Rendalls say it was increasingly difficult to compete with new technology, trends and customer demands and saw the online print ordering as an added-value service that Print Three offers to customers. Print Three recently announced that it is repositioning itself by targeting national corporate accounts. 

April 20, 2006
Pollard takes on Crockett and Tubbs
WINNIPEG—Who says security printing isn’t glamorous? Pollard Bank Note has scored the contract to design and print instant lottery tickets based on the classic television series, and soon-to-be major motion picture, Miami Vice. The contract is in agreement with the Universal Studios Consumer Products Group. “We’re thrilled to be partnering with Universal Studios in offering our North American clients this terrific licensing opportunity. We expect the nostalgic edge, target demographics, and enduring popularity of the brand to merge into an engaging instant ticket garnering broad support,” said Sina Airello, director, licensed products. 

U of T Press employee starts own shop
MISSISSAUGA—Dave Last, an employee at U of T Press, had just made the decision to expand his small home-run specialty print and finishing shop and hire his nephew, Craig Last, when he was informed that his workplace was selling off its printing operations. Final Imprint, which had been a small side business of Last’s for 22 years made the leap into a full-time business with a 1,500 sq. ft. facility on Britannia Road and four letter presses. The trade shop’s capabilities now include die-cutting, numbering, perforating, embossing, and hot-foil stamping.

April 18, 2006
C.J. Digital becomes independent company, First Impressions winds down
TORONTO—Some big changes have been brewing at the C.J. Graphics premises over the last few weeks. Mid-March, PrintCAN caught wind of a puzzling situation that involved First Impressions Graphics seemingly operating at C.J. Graphics’ Park Lawn Rd. location as well as the emergence of C.J. Digital. Today, president Jay Mandarino confirmed that the company’s subsidiary, C.J. Digital, has been incorporated and is now a stand-alone company, which will provide variable data and short-run colour printing. Also, although First Impressions Graphics had moved to vacant space in C.J. Graphics’ facility with the intention of operating there, president Dean Baxendale has since decided to close First Impressions and is currently in the process of winding down the operation. C.J. Digital has hired Baxendale as vice president of strategic sales, and other First Impressions staff have been hired at the newly-formed company. Mike Megaffin, former president of On The Mark Graphics, will take on the role of president of C.J Digital. Mandarino also confirmed that once First Impressions has satisfied its obligations, C.J. Digital may enter into discussions to purchase or assume some existing leases, if permitted by the current vendors.

BCIT graphics program pushed back to September
RICHMOND, B.C.— The British Columbia Institute of Technology’s (BCIT) Graphic Communication Technology program will kick into gear in September 2006. Organizers in the BCPIA’s Education Task Force, who have been working on creating the program since 2003, had hoped the courses would begin in January, but due to the lengthy review process new programs undergo in the province, the program will start at the beginning of the next school year. Twenty-four students will be accepted to the program in the first year. Marilyn Knoch, president of the BCPIA, says the Task Force has already raised $1.5 million of its $2 million goal start up and operate the program and more fund raising is planned in the coming months. Besides financial donations, some of which are being amortized over a one- to five-year period, some companies are participating by providing entrance awards of $1,200. Among the province’s supporters are print companies Rhino Print Solutions, Hemlock, Metropolitan Fine Printers, Broadway Printers, and Western Printers. Over the summer, the equipment will be acquired and set up at the school for the hands-on, two-year course. The BCIT program will include a two-week placement and the end of the first year and a six-week job placement at the end of the second year. Graduates will be able to enter the work force after the two years, or transfer into Ryerson University’s bachelor program in Toronto for another two years.

April 13, 2006
Cuttell Brothers auction next week
TORONTO—After going bankrupt and closing its doors recently, the assets of Cuttell Brothers shop will go up for auction on Wednesday, April 19 at 11 a.m. The sale will be held at 40 Colville Road in Toronto and includes three presses, a paper cutter, slitters, and other printing equipment and accessories. A preview will be held on the same day from 9 a.m. to sale time. The auction is being hosted by Danbury liquidators. In February PrintCAN reported that Cuttell Brothers was shutting down due to declining business and not enough capital, compounded by the loss of major customers such as Arthurs-Jones and Baker Graphics.

Transcontinental buys control of digital ad display firm
MONTREAL—Transcontinental has acquired a majority interest in Montreal-based Enixa Media, which manages a network of 400 in-store digital advertising displays in 45 stores in the Montreal area. The investment will enables Enixa’s network to grow to about 2,000 flat screens in some 200 grocery and other retail locations across the province over the next two years, with an estimated reach of more than three million customers. Transcontinental president and CEO Luc Desjardins said the deal offers the company’s advertisers another complementary medium to its newspapers, magazines, flyers and websites to reach consumers.

April 11, 2006
Pollard cashes in on lotteries
WINNIPEG—Pollard Banknote has won new contracts to supply both the Manitoba and B.C. lottery corporations. In B.C., the company is launching the Scratch & Win PlayBook, the first Pollard PlayBook that implements its patented Fusion technology. The book is a new concept in which layers of laminated stock are combined to create a booklet of themed games. A variety of game types can be fused into the Pollard PlayBook, including games that use the company’s translucent marking system. In Manitoba, Pollard has entered into a new contract with Manitoba Lotteries Corporation to supply and deliver bingo paper, worth more than $1 million. MLC is a new customer for Pollard Banknote’s bingo paper and is also the company’s first lottery customer for the paper, other than private charitable gaming distributors. 

Print Three repositions for national corporate service market
TORONTO—Print Three franchising corporation is repositioning itself by targeting national corporate accounts. The company says that 59 retail locations across Canada are no longer single corner-store print shops, but rather, a united national network capable of managing large national accounts with variable print and production needs. Print Three has web-to-print e-commerce services and its network is now positioned as an on-site, near-site and virtual outsource provider. The company says it now plans to compete not with the 6,500 corner print stores, but with an industry that consists of only 10 outsource vendors. 

April 6, 2006
Quebecor World goes on shopping spree, expands in Latin America
MONTREAL—Quebecor World is expanding its operations in Mexico and Latin America and upgrading its facilities in the U.S. as part of a three-year strategic investment plan to improve its book printing operations. The U.S. investments will include high-speed, automated makeready equipment. The company is installing two, wide web MAN presses in Fairfield, PA., as well as new CTP systems and new casing-in equipment in Fairfield and Martinsburg, WV. Martinsburg will also have press upgrades and the plant in Tauton, MA will get added case making and integrated bindery equipment. Quebecor says selected assets will be redeployed to its other facilities in North America, Europe and Latin America. The company has also beefed up its integrated service between its U.S. and Latin American plants. Standardized service systems and electronic file transfer system will allow printing products to be delivered daily to the U.S. market from Mexico and weekly from Bogota, Colombia, and Lima, Peru. “U.S. publishers like the option of more cost-effective product with faster deliveries than are possible from Asia,” said Guy Trahan, president of Quebecor World Latin America.

Pierre Karl Peladeau out, Wes Lucas in at Quebecor World
MONTREAL—Pierre Karl Peladeau will be leaving his post as president and CEO of Quebecor World, but will continue to play a role at the company as chairman of the executive committee, it was announced today. Peladeau is taking on the job of vice chairman of the board and CEO of Quebecor Media and retaining his position as president and CEO of Quebecor Inc. Peladeau is being replaced at Quebecor World by Wes Lucas, former president and CEO of Sun Chemical.

April 4, 2006
Supremex completes IPO
TORONTO—Supremex Income Fund completed its IPO and began trading on the Toronto Stock Exchange yesterday under the symbol SXP.UN.The Fund offered 17.5 million units at $10 per unit. Supremex manufactures stock and custom envelopes. Cenveo, former parent company of Supremex, will retain ownership of 36.5% of the outstanding units of the Fund, and will receive monthly cash distributions totaling about US$11.4 million on an annualized basis. Cenveo’s interest will fall to 28% of units if underwriters exercise their option to buy more units. Annual sales for Supremex totaled $191 million in 2005, down from $205 million in 2004, due to the sale of Classic Envelope and Precision Papers. The Fund’s units closed at $9.95 yesterday. 

Gaetano Gagliano shows off his very first press, bought in 1956.
Gaetano Gagliano honoured with entrepreneurship award
TORONTO—Gaetano Gagliano, founder and honorary chairman of St. Joseph Communications, received the New Pioneers Entrepreneurship Award at a gala at the Metro Convention Centre last week. The New Pioneer Awards are presented by Skills for Change, a non-profit agency, to recognize the achievements and contributions of immigrants. Gagliano moved to Canada in 1954 with his family and got his first job laying track for CP Rail. Two years later he used his life savings to set St. Joseph print shop in the basement of his family home. Today, St. Joseph is Canada’s largest privately owned communications company with more than 2,000 associates coast to coast. The company donates 10% of its profits each year to philanthropic endeavours. In 1998, Gagliano was awarded the Order of Canada and an honourary doctorate from Ryerson University and will receive a second honorary degree from St. Francis Xavier University this spring. At age 88, Gagliano continues to work every day.
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