Postmedia Network Canada Corp. (TSX:PNC.A) intends to sell two of its real-estate holdings, including its Kennedy Heights printing facility in Surrey, the media giant announced September 9.
The company is also selling the Calgary Herald building in Calgary. Beginning in November 2013, the printing of the Calgary Herald will be outsourced to TC Transcontinental Printing.
Postmedia said it has not decided on a course of action for replacing the Kennedy Heights printing facility.
B.C.'s media union CEP 2000 said in a statement that it was told by Postmedia CEO Paul Godfrey that operations at Kennedy Heights will cease sometime in 2015, and that the company presented the union with two possible options going forward. These are:
- contracting out the work currently done at Kennedy Heights to Transcontinental, as with the Calgary Herald; or
- opening a new plant that would cost less to operate than Kennedy Heights.
The CEP 2000 statement said, "Godfrey explained that the contract between Postmedia and Transcontinental will not go into effect if the company and union reach a deal before November 18, 2013, that reduces costs at a new plant by 70-75%."
Phyllise Gelfand, vice-president of communications for Postmedia, said, "With Kennedy Heights, while we know we'll be shutting the facility, we need to explore what the printing opportunities are, and we've asked the union to engage in those discussions with us."
Postmedia said the net proceeds from the sales will be used to pay down debt.
