- TC Transcontinental (TSX:TCL) announced it has temporarily laid of 1600 print workers due to COVID-19 closures
- announcement comes on the back of government sanctioned closures of non-essential services
- The printing sector of the business is experiencing a significant reduction in activity
- In the packaging sector, the company’s sales have bumped due to increased food packaging demand
- TC Transcontinental (TCL) is up 20 per cent, with shares trading at C$12.29 and a market cap of $1.09 billion
TC Transcontinental (TSX:TCL) has updated the market on the effects COVID-19 is having on the packaging and the printing sectors.
TC Transcontinental is one of the largest packaging companies in the world, with core businesses in the flexible packaging market in the US and printing in Canada.
The company’s packaging sector, which represents half of the revenue stream, has seen substantial growth during this time of uncertainty.
The vast majority of packaging operations support the food industry, a sector considered critical by all governments.
While the company is experiencing slowdowns in other sections of the business, the packaging sector is steaming ahead.
On the printing side of the business, the company has temporarily laid off 1600 workers.
There is no clear indication from the company if these workers will be allowed to return to work once the crisis is over, or for how long they will be off work.
The news comes amongst widespread government mandated closures right across Canada, as provincial Governments such as Quebec and Ontario lock down non-essential services.
President and CEO of Transcontinental, Francois Olivier said the company had been working to halt the spread of the pandemic, protect the safety of employees, and ensure work could safely continue within the company.
“We have deployed protective measures across the company, and I am thankful to our management and our employees for their dedication to health and safety and for their work to support our client’s businesses.
“We know it is our duty to contribute to the collective effort.
“We support governments in their actions, as well as our clients who deliver essential services.
“We hope that the public health measures will be followed and have the desired effect, and that a return to normalcy will take place soon,” he said.
TC Transcontinental (TCL) is up 20 per cent, with shares trading for C$12.29 at 2:21 pm EST.
