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QUEBECOR WORLD BUYS MEXICAN PRINTER

Montreal-based Quebecor World Inc. has purchased the manufacturing assets of Grupo Serla, a commercial printer based in Mexico City. The terms of the acquisition have not been disclosed. Serla is primarily a printer of textbooks and telephone directories. According to Quebecor, Serla's directory capacity will be increased by 300% and its book capacity will be increased by 100%. The purchase is largely to accommodate a long-term contract Quebecor signed in May of this year to print 20 billion directory pages per year for ADSA, a subsidiary of Telmex. These pages will be produced by Serla's existing employees and by three directory press lines being re-deployed from North American operations. "This is more than an investment in one contract, it is an investment in the future," said Charles Cavell, president and CEO of Quebecor World. "The experienced Serla employees are an important asset in this transaction." The deal is expected to close in the fourth quarter of this year. Local manufacturing is also expected to begin at that time.

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