January 08, 2000  -

R.R. Donnelley & Sons Plant Expansion

'Good Thing' for the local economy

Like Martha Stewart says, "It's a good thing."

Holding a copy of the magazine published by its newest customer, the director of the Mattoon R.R. Donnelley & Sons division discussed with local officials Friday recent plant expansions.

Joe Kingan said plant employment increased by about 200 jobs the last six months, about 60 of which are directly attributed to a new seven-year contract to print Martha Stewart Living magazine.

Kingan showed guests copies of the first Martha Stewart magazine printed in Mattoon - the February issue - and said work already is under way on the March edition.

"It's a high-quality job," Kingan said of the Martha Stewart publication. "We're very pleased to be able to partner with Martha Stewart." The magazine distributes about 2.3 million copies 10 times a year.

The Martha Stewart magazine is distributed primarily in the United States and Canada, with some foreign distribution.

Also underway at Donnelley is a 50,000 square-foot expansion of the plant on U.S. Route 45 north of Mattoon. The company doesn't release precise overall square footage or employment levels, but Kingan noted the Mattoon plant has two U.S. post offices.

"We're very excited about, the expansions of the plant," Kingan said. "We've made significant plant improvements including adding equipment, not necessarily related to Martha Stewart."

Kingan said while the labor market in the immediate area is tight, the company has filled the new positions. Most Mattoon based Donnelley employees come from a six-county area that covers about a 40-mile radius.

Jeanne Gustafson, executive director of Coles Together, the county's economic development organization, said 200 new jobs at an established employer has a huge impact on the area economy.

Mattoon Mayor Wanda Ferguson thanked Donnelley for its continued investment in Coles County after opening in the late 1960s with about 50 employees.

Kingan said the plant has productive employees. The Mattoon division is one of the biggest Donnelley plants worldwide, he said, and is very important in part because of the multiple processes under one roof.

This would mark about the fourth expansion in recent years, Kingan said, noting improvements such as new presses and related equipment.

New press finishing equipment allows Donnelley to more efficiently produce magazine and catalog covers on a press installed in 1998, the company statement.

A second project includes a new, state-of-the art offset printing press capable of more than doubling the output of the 1982 press it will replace. Both Presses are to be operational by mid-2000.

The printing business is extremely competitive, Kingan, said, and it's a credit to Donnelley employees that they are able to grow the business.

Sen. Judy Myers, a representative from Rep. Dale Righter's office, and Lois Love of the Mattoon Chamber of Commerce also attended the announcement. Myers encouraged the company to pursue any state assistance it might qualify for through a new job creation called " Edge."

The Plant addition is in the Coles County Enterprise Zone and qualifies for abatements on real estate taxes.

Martha Stewart Living Omnimedia Inc. is a multimedia company with four business segments: publishing, television, merchandising and Internet/direct commerce.