Paragon Customer Communications is investing a seven-figure sum in new equipment for its Nottingham site, but a review of staffing requirements will result in 20 jobs going as part of the changes.
The facility, near Sutton-in-Ashfield, currently employs 285 staff.
The £1m spend on new kit includes Kodak high-speed inkjet imprinting heads for one of its three web presses, along with a new inline inserter for the same press. One of the other webs is already fitted with Kodak heads.
The investment also includes a new Bowe enclosing line.
Employees were briefed about the changes on Friday (1 March), and the consultation period will begin on 11 March.
“Our employees understand why these changes are necessary and we are also speaking to the union chapel,” said chief operating officer Vincent Gidley. “The proposals involve various roles across the business. We have also asked for volunteers and given a week for people to come forward.”
The 15,800sqm Nottingham site runs a raft of specialist kit for the production of direct marketing and personalised promotional materials including three M600 web presses, a Prosper 5000XL inkjet press, a 12-colour Speedmaster with CutStar, and extensive finishing facilities.
It runs a combination of three shifts and double-day shifts, with weekend working as required.
Gidley said the new inserter on the M600 will be fitted in the middle of the press. “It will allow us to bring streams of paper together to create dynamic products,” he explained.
Paragon Customer Communications chief executive Jeremy Walters said that although Brexit uncertainty meant some customers were holding back on activities, the group remained confident about future prospects.
“We’ve made some big wins and are confident about making this £1m investment in our Nottingham site,” he said.
“We’re finding that decisions on some large campaigns have been held back in Q1. Customers are holding budget because there may be some specific Brexit communications they have to make.”
Paragon Customer Communications has nine production sites and four offices nationwide and employs more than 2,000 staff overall.