The Vancouver Sun building in downtown Vancouver.

Postmedia plans to sell printing plants in Surrey and Calgary

The financially embattled newspaper company lost a reported $112 million in the first quarter of 2013, due to tumbling print advertising.

Newspaper group Postmedia – which publishes The Vancouver Sun and The Provinceis planning to sell two printing plants in an effort to reduce both costs and debt.

Postmedia will be looking for solutions – and buyers – for its Kennedy Heights building in Surrey, B.C. – which prints both Vancouver dailies mentioned above – as well as the Calgary Herald building in Alberta’s largest city.

Unifor local 200, formerly known as the Communications, Energy and Paperworkers Union, released a statement online on Monday.

“Union officers will be consulting with our legal counsel and meeting with members to discuss our next steps… there will be no involuntary loss of employment of any regular employee during the life of the contract as a result of (this news)…”

Earlier this year, Postmedia reportedly lost $112 million in just its first quarter, with 59 per cent of its revenue coming from print advertising.

Digital revenues have been slow – and are failing – to make up the difference in the company’s print losses. Print revenues, although falling rapidly, still amounted to $113 million in 2013’s first quarter, while digital revenues grew just $500,000 to $24 million.