DMGT merges national and regional divisions

by Joanne Gardner, PrintWeek 22-Jun-06, 08:01

DMGT is set to merge its national and regional printing operations as part of the news group’s two-year cost-cutting restructure programme.

According to an industry source, Harmsworth Quays Ltd (HQL) will combine with The Northcliffe Press, the largest contract newspaper printer in the UK with eight sites, to become Harmsworth Media Printing.

HQL is the umbrella body for Associated Newspapers printing, which includes the Daily Mail and Evening Standard, and contract work at Harmsworth Quays Printers (HQP), the world’s largest flexo plant.

The combined operation will include the new £87m full-colour flexo plant at Didcot, Oxfordshire, which is on target to begin production in 2008.

HQP managing director John Bird (pictured left) will be in charge of the whole operation, which employs 1,200 staff. Christine Klafkowsa (pictured right), HQP operations manager, will become managing director of Didcot.

DMGT financial director Peter Williams said it made “eminent sense” to combine the operations. “Having decided not to sell Northcliffe, [the move] is to get best use of our facilities.”

According to DMGT’s interim results last month, the restructure is on target to return annual savings of £45m by September 2007.

DMGT announced the two-year, £100m restructure last year, before announcing the sale of its regional arm, Northcliffe, six months later.

However, following disappointing bids, DMGT decided to retain Northcliffe. Bird was unavailable for comment.