Question-and-Answer Session
Operator
(Operator Instructions). And the first question comes from the line of Larry Klatzkin with Jefferies. Please proceed.
Lawrence Klatzkin - Jefferies & Company Inc.
Hey guys, we do appreciate the increased information flow.
Joseph Wright
How are you, Larry?
Lawrence Klatzkin - Jefferies & Company Inc.
Hey Joe. You do the cost cutting, do we you have any concerns about keeping the production up as you do the cutbacks, any kind of worries about that?
Joseph Wright
No, not at all. As a matter of fact, when we opened up the first press that Mike mentioned in China and the second one coming up at the end or the second quarter, this is going to give us the capacity, so we don't have to go 24x7. As you know, last year, we were all out. We really had no capacity left at all. And so this is going to open this up a little bit to where we can kind of rationalize our productions and our packaging lines. So I don't see a problem with that at all; do you Mike?
Michael Chambrello
No. Actually Larry, this was not a scattergun approach. This was a full team effort. We researched the organization up, down, left, right. And the areas that were cut frankly are areas that are not going to generate future growth, future profitability and areas like production. We are never going to mess with what makes us as great as company as we are, and no worries there whatsoever.
Joseph Wright
Yeah, we don't really take a risk on that. I think probably it was done in a very short period of time, I think we did a good job of looking at the entire organization; Mike, I really do, and the last area that would be customer service and production.
Michael Chambrello
And part of it is again return on capital, the decommissioning of the press that I mentioned in my notes is it's the highest and released official press that we have. We are going to put the new press of an operating in Montreal. And like our other BHS, it's actually reduced its cost and manpower. So there is a return on our capital right there.
Lawrence Klatzkin - Jefferies & Company Inc.
Now are you buying a new... a new press is going to go up in Canada too?
Michael Chambrello
It's going to be installed in the second quarter of this year, operational in the third quarter Larry, and it's going to lay the ground work for us to be extremely competitive in a Canadian market, where we are underperforming and undeserving our customer. I'm very excited about it.
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