WINNIPEG, MB / ACCESSWIRE / August 2, 2022 / FP NEWSPAPERS INC. (TSXV:FP) ("FPI") FP Canadian Newspapers Limited Partnership (FPLP) is pleased to announce a major new investment in press production capacity in Winnipeg.
FPLP has signed agreements with Machinery Solutions Group Inc. to acquire assets from a production facility in Jersey City, New Jersey, which until recently printed the New York Daily News. The equipment includes a KBA Commander CT Press System and Ferag mailroom equipment as well as additional machinery to enable and enhance the capacity of the press equipment. All of the equipment will be moved to Winnipeg over the next several months and installed at the production facility located at 1355 Mountain Avenue. It is expected to be operational in 2023.
The new equipment will result in significant efficiencies that will reduce FPLP's production costs. It will also dramatically expand web printing capacity at the Winnipeg facility, which will be able to perform a wide variety of commercial printing jobs.
The total approximate cost of the initiative is $10 million. It will be financed in part from an amended credit facility with HSBC, which holds FPLP's long-term debt.
"This is a major vote of confidence in our future," said Bob Silver, chairman. "It will position us to print our newspapers at lower costs and to grow our commercial business as a Manitoba-based printer of high-quality publications."
Existing press equipment in Winnipeg will continue operating, producing the Winnipeg Free Press and other publications, until the KBA press is fully operational. At that time, it will be decommissioned.
FPLP owns and operates the Winnipeg Free Press, along with several other Manitoba-based news and media publications that are available in both print and digital formats. The informative and engaging content we produce has an extensive reach throughout the province of Manitoba. The breadth of our reach provides compelling platforms for those looking to effectively reach a Manitoba audience. FP Newspapers Inc. owns securities entitling it to 49% of the distributable cash flow of FPLP.
For further information please contact:
Ryan Kolaski, CFO
FP NEWSPAPERS INC.
SOURCE: FP Newspapers Inc.