WARSAW — Chicago-based printing company LSC Communications, which has multiple plants in Indiana, says it is closing two of its facilities in Lancaster County, Pa. The work at those plants will be shifted to two other LSC operations, including one in Kosciusko County.
The company tells Inside INdiana Business says the shutdown is the result of a steady decline in demand for long-run catalog and magazine printing. A company spokesperson says it will not be adding staff to its Warsaw plant as it has the capacity to absorb the incoming work. The other plant to pick up the extra production is in Minnesota.
“The consolidation decision was made after having exhausted all other options for the business. It has zero to do with our team members’ abilities or commitment; they are exceptional workers and people, and we’re doing everything possible to support them during this transition period,” said LSC Communications CEO Stephanie Mains.
Indiana has not been immune to LSC closings. In September 2020, the company announced it was shuttering one of its plants in Kendallville and laying off more than 300 workers. Like the Pennsylvania closing, LSC blamed the move on “continued deterioration of market conditions.” The Noble County facility printed books.
A second LSC location in Kendallville remained open as it handled digital production and warehousing.
In December 2020, the company was acquired by Connecticut-based private equity firm Atlas Holdings as part of a $347.5 million bankruptcy sale of LSC.
“LSC emerged from bankruptcy a few years ago and we’ve been doing everything possible, through the COVID-19 pandemic and beyond, to stabilize our business and plan for growth in the future. At the same time, demand for long-run catalog and magazine printing has continued to decline, while paper and ink costs continue to rise. Our customers are reducing their page counts and print runs, and some are converting to other marketing channels, forcing us to closely examine our operations and position ourselves for winning in a new marketplace,” said Mains.
More than 650 Pennsylvania workers will be let go by the end of March.