IWCO Direct plans close its direct mail production facility in Melville, NY, move equipment and shift operations to plants located in Minnesota and North Carolina, where total production capacity will be expanded to 250 million packages per month.
Roughly 200 employees at the Melville plant will lose their jobs, while as many as 40 may be able to transfer to a plant in Elm City, NC, where production capacity is being expanded.
Production capacity also will be increased in Minnesota with additional four-color digital cut sheet and roll-fed capabilities. IWCO operates two plants there in Chanhassen and Little Falls.
With production concentrated in Minnesota and North Carolina, IWCO anticipates that more mail commingling opportunities will arise for customers to qualify for postage discounts.
The reorganization is expected to lower operating costs as well.