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Phoenix/Pearson contract

February 04, 2002

Phoenix Color Corp. lands eight-year contract



By JULIE E. GREENE
julieg@herald-mail.com


Phoenix Color Corp. has announced an eight-year contract with the world's largest educational book publisher that is worth $205 million in business to Phoenix's two Washington County book component plants.

Phoenix already was doing business with Pearson Publishing, but this deal formalizes that arrangement for a longer period and adds security for future work, Phoenix Marketing Manager Kelly Hartman said. The deal also increases the volume of work the local plants will get.

For now, company officials don't expect additional hirings and actually laid off 15 workers Friday at the book component plants for several reasons, Hartman said.

Hartman couldn't say whether the Pearson contract would prevent further layoffs.

Since Phoenix already was doing work for Pearson, more hirings or layoffs will depend, in large part, on demand from the company's other customers, Hartman said.

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The deal will result in a guaranteed minimum of $25.6 million in business a year for Phoenix for eight years through 2009, Hartman said.

Book components include the book jackets, paperback covers, hardcovers and color inserts, Hartman said.

Pearson, headquartered in Upper Saddle River, N.J., includes general interest publishers Putnam Publishing, Viking Press and E.P. Dutton and educational book publishers Prentice Hall, Scott Foresman, Silver Burdett and Addison Wesley.

Under the arrangement, Phoenix will work on components for books authored by Robin Cook, Patricia Cornwell, Tom Clancy and Nora Roberts, Hartman said.

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