IOS has now begun consultation with all staff at its Manchester operation, which is understood to employ in excess of 200 people, with a view to the possible closure of the site.

IOS chief executive Nick Dixon said: "The difficult decision has been made to look at closing our Manchester facility.

"Unless during the consultation process something compelling leads us to change our thinking, we will be concentrating our efforts on trying to find alternative employment for the workforce at our other production facilities.

"Following a strategic review over the past few months, this is a course of action that we believe is necessary. In this way we aim to put the business on a stronger footing for growth over the next few years."

IOS predecessor Dsicmm, which merged with DST Output in August 2010 to form IOS, bought K2 in January 2008 to expand its cross-media and digital print capability.

Since then IOS has continued on the acquisition trail, buying Lateral Group last summer to create a £180m-turnover transactional and marketing communications giant.

This has necessitated some consolidation of IOS and Lateral production facilities and given rise to the group's strategy to create centres of excellence across its various disciplines.

This process was kicked off last November with the announcement of Lateral Group company Howitt as the sheetfed centre of excellence, which involved moving a 12-colour B1 Cutstar press from IOS' Dagenham site to Nottingham-based Howitt.