IWCO to Consolidate, Hire 60 in MN

The Chanhassen-based direct marketing services provider is consolidating operations at various U.S. facilities and boosting production at its facilities in Chanhassen and Hamburg, Pennsylvania; meanwhile, the company plans to hire more than 60 in Chanhassen.

IWCO Direct, a Chanhassen-based provider of direct marketing services, announced Friday that it will spend $4 million to restructure its operations in the next two to four months, which will result in its hiring more than 60 in Chanhassen.

As part of the restructuring, IWCO plans to close its facility in Downey, California, and increase customer service and production capabilities at its facilities in Chanhassen and Hamburg, Pennsylvania. The company said that the consolidation-in combination with high-speed equipment that it recently bought from New Jersey-based DGI Services, LLC-will reduce costs and enable it to produce up to 385 million direct mail packages per month, an increase of nearly 30 percent.

IWCO plans to lay off 250 employees at the Downey site and hire for a combined total of about 100 new positions at its facilities in Chanhassen and Hamburg; more than 60 of these positions will be in Chanhassen. The company said employees laid off in Downey will be given the opportunity to relocate to either of the two locations.

IWCO said that it will also relocate some of its Warminster, Pennsylvania operations to Chanhassen and Hamburg. This will reduce the number of buildings the company leases in Warminster from three to one. The company will lease available space in Hamburg and a 150,000-square-foot facility adjacent to its Chanhassen headquarters to facilitate the sites' expansions.

“Resetting our production platform with facility consolidations and the higher-speed equipment we recently acquired allows us to strategically incorporate greater efficiencies,” IWCO Direct CEO Jim Andersen said in a statement. “This will result in additional advantages for our customers, such as better net cost from enhanced postal solutions.”