Technicolor Home Entertainment Services plans to shut DVD plants in the United States and Western Europe and move the work to sites in Mexico and Poland.
Maturing of the market for standard-definition DVDs and movie-studio pricing pressures in the home-entertainment sector are driving the global restructuring.
THES of Camarillo, Calif., is a unit of the services division of Thomson SA of Boulogne-Billancourt, France.
THES intends to close its standard-definition DVD and CD replication lines in Pinckneyville, Ill., by the end of March, and the standard-definition DVD lines in Camarillo by July or August. The U.S. production will relocate to a Technicolor plant in Zapopan, Mexico, near Guadalajara.
The Pinckneyville plant, where 440 jobs will be cut, began making vinyl records in 1957, CDs in 1988 and DVDs in 1994. It is the largest employer in Perry County.
About 630 of 1,100 positions in Camarillo will be cut. Another 300 jobs were eliminated in July.
``We will keep the advanced media center in Camarillo for developments involving [high-defintion] DVD and Blu-ray'' technologies, said Tom Bracken, THES spokesman in Camarillo. Those types of discs are beginning to enter the commercial market.
Bracken said THES also cut 70 positions at a Memphis, Tenn., distribution facility.
Closures in Europe will involve plants in CwmbrÃ¢n, Wales, and Schifflange, Luxembourg, with the work going to an plant in Piaseczno, Poland.
THES downsized CwmbrÃ¢n in 2005 and 2006 and will eliminate 310 jobs with the closing. Shutting the Schifflange plant will cut 210 positions. Closing dates are being negotiated.
Technicolor intends to redistribute the production lines and replication equipment to the plants in Mexico and Poland.
Bracken said Technicolor has current daily DVD replication capacity of 2.4 million in Mexico and 1.3 million in Poland.
The daily DVD capacities for sites being closed are 400,000 for Pinckneyville, 200,000 for Camarillo, 225,000 for CwmbrÃ¢n and 160,000 for Schifflange, according to Bracken. In addition, Pinckneyville has a daily capacity to replicate 200,000 CDs.
While current equipment numbers were withheld, a THES executive said in a 2004 presentation that, by the end of that year, the Mexico site would have 108 DVD lines and the Poland facility 41 DVD lines.
Thomson acquired Technicolor businesses and assets including THES in March 2001 from Carlton Communications plc of London for $1.26 billion plus debt of $750 million. Carlton was the parent of Technicolor from 1988-2001.