Magazine article Editor & Publisher

Gesca Sells Plants and Buys Printing

Magazine article Editor & Publisher

Gesca Sells Plants and Buys Printing

Article excerpt

Canadian newspaper group outsources most of its presswork

The Power Corp. of Canada subsidiary that acquired UniMedia in January of last year and soon sold off its 14 weekly newspapers has now sold the printing operations of three of its seven French- language dailies to the weeklies' buyer, which also has agreed to build a production plant for the company's largest daily, its Montreal flagship.

Last month, Transcontinental Group, Canada's second-largest printer, signed a 15-year agreement to buy and handle the printing operations of Gesca Ltd.'s Le Soleil, Quebec City (Goss Metroliner,

Heidelberg sheetfed, Royal Zenith miniweb), Le Droit, Ottawa (Creusot Loire color offset), and Le Nouvelliste, Trois-Rivieres (double-wide Harris offset). Revenue from the agreement to print the three papers, according to Transcontinental, will amount to about $32 million.

Gesca will keep offset plants that print Sherbrooke's La Tribune and Granby's La Voix de l'Est on a Goss Cosmo and Chicoutimi's Le Quotidien and Progres-Dimanche on a Goss Urbanite. Gesca Communications Vice President Caroline Jamet said the Sherbrooke plant was of no interest to Transcontinental because the press there is for newspapers only. Though Chicoutimi's single-wide, two-around Urbanite may be more versatile, Jamet said the commercial printer "was not interested in buying" because it has no business in that geographic area.

A separate contract will transfer in summer of 2003 the printing of Montreal's 172,373-circulation (261,346 Saturday) La Presse from the paper's existing Goss Headliner letterpress to a Heidelberg Mainstream offset press in a Transcontinental printing plant now under construction. …

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