WINNIPEG, MB /ACCESSWIRE/August 2, 2022/ FP NEWSPAPERS INC. (TSXV:FP, Financial) (“REIT”) FP Canadian Newspapers Limited Partnership (FPLP) is pleased to announce a major new investment in newspaper production capacity in Winnipeg.
FPLP has signed agreements with Machinery Solutions Group Inc. to acquire assets of 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 activate and increase the capacity of the press equipment. All equipment will be moved to Winnipeg over the next few months and installed at the production facility located at 1355 Mountain Avenue. It should be operational in 2023.
The new equipment will result in significant efficiencies that will reduce FPLP’s production costs. It will also significantly increase the roll-to-reel capacity of the Winnipeg plant, which will be able to handle a wide variety of commercial print jobs.
The approximate total cost of the initiative is $10 million. It will be funded in part by a modified credit facility with HSBC, which holds FPLP’s long-term debt.
“This is a major vote of confidence in our future,” said Bob Silver, president. “This will allow us to print our newspapers at a lower cost and expand our business as Manitoba’s printer of high-quality publications.”
Existing press equipment in Winnipeg will continue to operate, 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, as well as several other Manitoba-based news and media publications that are available in print and digital format. The informative and engaging content we produce has a wide reach across the province of Manitoba. The breadth of our reach provides attractive platforms for those looking to effectively reach Manitoba audiences. FP Newspapers Inc. holds securities entitling it to 49% of FPLP’s distributable cash flow.
For more information, please contact:
Ryan Kolaski, Chief Financial Officer
FP NEWSPAPERS INC.
THE SOURCE: FP Newspapers Inc.
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