Transcontinental: No change in core strategy

Transcontinental Inc. remains committed to its newspaper outsourcing strategy despite the slowdown affecting the industry and despite concerns that its contract to print the San Francisco Chronicle may be in jeopardy.

“There is no change to our core strategy,” Ted Markle, Transcontinental’s senior vice president, newspaper group, told News & Tech.

“I think it’s a situation where, through this time of transition, there will be winners and losers in this industry, and because of the long-term nature of our kinds of relationships with publishers, we are going to be sure to partner with the winners.”

Transcontinental’s first U.S. project, to print and package the San Francisco Chronicle at a $200 million plant in Fremont , Calif. , is in flux because Hearst Corp. has threatened to close the money-losing paper. Transcontinental earlier said it has contingency plans in place in the event Hearst does pull the plug, and that it would also be “indemnified” against possible losses.

“Everything is on schedule in Fremont ,” he said. “We are excited and pleased about the progress we have made and the team we are building.” At this point, he added, “We’re sticking to our plan.” The plant is scheduled to open in June.

Transcontinental is trying to weather its own challenges. The company, which also prints The Globe and Mail, La Presse and certain editions of The New York Times, lost more than $6 million during the first quarter, compared with a $34.1 million profit in the same period a year earlier.

“We are going to see what the marketplace looks like and we will adapt accordingly,” Markle said about the near future. “We’re not putting things on hold; what we are doing is staying very close to the industry and are monitoring how things are developing. When the industry comes back, we’ll be ready.”

In the meantime, Transcontinental is starting to produce product at its Transmag plant in suburban Montreal that’s anchored by triplewide Colorman presses from manroland. One of the presses is also equipped with a UV drying system. That press, Markle said, will be operational later this year.

Markle also said that Transcontinental hopes to identify — soon — the press vendor it will use to print The Globe and Mail under terms of its contract extension with the national paper. Transcontinental said it would buy new presses and adopt other technology to establish “a new and innovative Canadian platform” anchored by presses capable of printing both newspapers and advertising inserts (see News & Tech, October 2008).

AbitibiBowater files for bankruptcy

Slammed by the faltering economy and a drop in demand for its newsprint and other paper products, AbitibiBowater last week filed for bankruptcy protection in both the United States and Canada .

AbitibiBowater said bankruptcy was the only option after U.S. creditors rejected a recapitalization plan designed to reduce debt by more than $2 billion.

“The company has concluded that there are no viable alternatives to its previously announced proposed refinancing of its Bowater and Abitibi-Consolidated subsidiaries, and as a result has determined that the best course of action is to pursue its overall restructuring under court supervision in the United States and Canada,” the firm said in a statement.

According to Bloomberg, AbitibiBowater had assets of $9.9 billion and debt of $8.7 billion as of Sept. 30.

The firm said it has struck an agreement to receive $200 million in debtor-in-possession financing from Fairfax Financial Holdings Ltd. and Avenue Management LLC to support continuing operations and that no other immediate changes to its business are foreseen.

AbitibiBowater was formed in late 2007 when Abitibi Consolidated merged with Bowater Inc. in a transaction valued at $4.8 billion.

NYDN picks Pesmel for roll handling

Following the bankruptcy and closure of the vendor originally tapped to supply an automated roll handling system to the ( New York ) Daily News, the paper picked a new company to finish the project.

Pesmel, a Finnish vendor, will install a six-high storage system, including two stacker cranes, as well as material management software and other associated applications, according to IMC America, Pesmel’s North America sales agent.

The system, to be installed at the Daily News’ Jersey City , N.J. , plant, will feed newsprint to the paper’s new Koenig & Bauer AG Commander CT pressline. It will be delivered this fall, IMC said.

The Daily News and KBA were forced to find a new roll handling supplier following the bankruptcy and closure of vR Systems late last year.

Dow Jones to close Dallas plant

Dow Jones confirmed to News & Tech that it plans to close the Dallas plant now printing The Wall Street Journal and Barron’s and transfer production to another printer.

Dow Jones said it hadn’t yet made a decision regarding where The Journal and Barron’s would be printed. But The Dallas Morning News is a likely option, observers tell News & Tech.

The Dallas plant would be the fifth printing facility Dow Jones has closed in the past year. Earlier, it shuttered plants in Chicago , Denver , Orlando , Fla. , and Des Moines , Iowa.