The installation, part of its £22m-investment programme, follows the arrival of UK’s first HP T350 full-colour book manufacturing line into CPI Antony Rowe in Chippenham earlier this month.

CPI would not reveal details of the kit it will install or how much the move would cost, but said the reorganisation would take place over the next few months as part of a bid to expand its digital capacity.

Up to 20 jobs could be cut as part of the relocation process.

CPI UK chief executive Francois Golicheff said: "We want to help publishers by freeing them to reduce their inventory, minimise their risk and grasp new markets. We also believe that our investment in this latest technology makes short-run colour a reality, both commercially and in terms of quality."

CPI UK chief operating officer Ian Smith added: "The digital expansion will be happening over the next few months but we are not able to confirm timescales as yet. All of the equipment from Bookmarque will be moving across.

"Installing our second inkjet line at our facility in Croydon will be a good opportunity to showcase the new technology, given its proximity to London."

Smith said that the printer was retaining its litho capacity for the foreseeable future, but added that there may be migration from litho to inkjet in the future.

"Many of our customers are asking for short-run lengths and our investment programme will mean we have the right technology for whatever run length they request," he added.

CPI UK lost half of a £14m-a-year Random House paperback book printing contract to rival Clays in December, according to industry sources.

Asked if the loss of volume had contributed to the decision to relocate CPI Bookmarque, Smith said that the reorganisation was part of a long-term strategic plan and was the second phase of the company's digital expansion.

CPI’s latest investment follows the purchase of two Xerox web presses in 2008 and the installation of an HP Indigo 7500 colour press to meet demand for shorter run covers.