North American paper-based packaging solutions provider Supremex has announced new optimisation initiatives to enhance its operational efficiency and attain synergies within its Packaging and Specialty products segments.

These initiatives are projected to yield yearly cost reductions of approximately $1.5m once all measures are put into place.

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The company is set to shut down its Saint-Hyacinthe-based factory in Canada, which was acquired as a part of the Impression Paragraph transaction earlier this year.

Production currently undertaken at the Saint-Hyacinthe plant will be moved to Supremex’s existing packaging facilities in the Montreal region of the country.

The facility holds 28 employees, with some of them expected to be moved to other operations within the company.

In relation to this announcement, Supremex will report a non-recurring restructuring charge of roughly $2.8m before taxes in its fourth-quarter financial statements.

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Supremex has also revealed the departure of Simon Provencher, who served as president of its Packaging segment.

After the departure of Provencher, the company restructured its packaging management. Three general managers will now oversee folding carton, e-commerce, and commercial printing activities, respectively.

These managers will report directly to Supremex president and CEO Stewart Emerson.

Emerson said: “Transferring folding carton production to existing facilities will significantly increase operating efficiencies, and synergy achievement across our operations.

“We regret the impact that this decision could have on affected employees and their families. Meanwhile, the new management structure will enhance our capacity to drive additional value in each sector of activity and maintain proximity with our customers.”

Employing more than 1,000 people across the business, Supremex has ten manufacturing facilities across four provinces in Canada and six manufacturing factories in four states across the US.

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