The Preston-based company, which is targeting a £3m turnover in the next three years, was supplied the machine by Xerox Premier Partner B2 Business Systems.
Paper Innovation is using the machine, which features on-line spot varnish capabilities, to produce a range of bespoke stationery items such as desk pads.
Steve Johnston, managing director at Paper Innovation said, the equipment gave the business "tremendous capabilities in terms of product range, print and finish quality and turnaround times".
The Xerox 1000 can print up to 100 A4 pages per minute on a maximum sheet size of 330x488mm. It can handle stocks ranging from 55-350gsm.
According to Johnston, the machine will also enable the company to keep costs down by producing more digital print in-house.
The company's latest investment comes on the back of a £250,000 spend on a Kolbus DA 260 casemaker last year as well as a Renz AP360 automatic punch, a Bush ram punch, a Foliant Gemini 400 laminator and a Duplo 445 scoring and slitting line.
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