According to managing director Craig Cowan, the Glasgow-based printer can handle short runs economically because the machine features an inline dryer.
He said: "With a dryer, we can cost effectively handle 16-page magazine runs of 200-300 copies. We can be competitive on a litho machine.
"We have a little digital machine, but the quality still falls down when compared to a litho machine. To compete on quality you have to spend a lot of money on a digital machine."
The five-colour machine will be installed at the beginning of the year, replacing an older four-colour Heidelberg. The fifth unit, as well as carrying a fifth colour, can be used for sealing and metallics.
Cowan Print, which has a turnover of £600,000 and employs six staff, was formed in 1987. It handles commercial work, including magazines, brochures and stationery.