Jul 18 2011
Technicolor Cease its Release Printing Manufacturing Operations in Mirabel
July 18th – Technicolor announced that the company will stop his activities in Mirabel Manufacture effective immediatly, Mirabel’s manufacture was employing 178 people.
Following the rapid shift to digital cinema since 2010, the group began in October 2010 to reorganize its business photochemical production of 35 mm because of a declining demand, more and more theaters are moving to digital projection. This sector accounted for 10% of its turnover in 2010, which represent 3.6 billion euros.
They launch Phase II with the shutdown of Mirabel’s operations, in phase II they also conclude a subcontracting agreements with Deluxe, covering:
35mm release print manufacturing
-Subcontracting agreement from Technicolor to Deluxe in North America
-Subcontracting agreement from Deluxe to Technicolor in Thailand
-Subcontracting agreement from Deluxe to Technicolor for negative development in the UK
Theatrical distribution
-Subcontracting agreement from Deluxe to Technicolor for the distribution of photochemical film prints in the US
Technicolor will continue to service its clients, and Technicolor and Deluxe remain competitors in all markets where they operate. Technicolor maintains its front end activities in North America and remains the key provider of 65/70mm film printing worldwide.
This enables the Group to have a more flexible cost structure with the share of variable costs moving from 60 to 85% in North America. In addition, the cash restructuring costs linked to the implementation of this phase II are expected to be offset by savings on photochemical maintenance capex and by the favorable impact of incremental distribution volumes.
The phase II will ensure that the Group focuses its investments in digital services where it already benefits from market leading positions, while continuing to serve its customers through the tail of film processing.
