Reflex Dynamic Sleeves (RDS), which has 70 staff, will offer both UV and solvent-based flexo-printing for both short and long runs.

Managing director Ian Kendall said: "Shrink sleeves have long been the first choice of marketing departments, but the comparatively high prices often cause the purchasing team to put the breaks on."

Kendall added that price increases for self adhesive label stock over the past two years had created a swing in favour of shrink sleeves. The company has been supplying shrink sleeves for some time but hopes that the new division will make the packaging more accessible.

"RDS will make shrink-sleeving even more accessible to UK brand owners, by taking away barriers such as high minimum order quantities and long lead times," he said.

The company will be working closely with The Greenhouse reprographics and artwork agency, which specialises in adapting designs for packaging application.

Kendall said: "The Greenhouse’s specialist software shows us how the sleeve will behave during shrinking, allowing us to accommodate for the warp that inevitably occurs. It also gives us and our customers the ability to create 3D films and presentations to pitch concepts and discuss ideas with their team and their clients."

In August Reflex Labels, which has a projected turnover in excess of £40m for 2011, announced that it had acquired the assets and goodwill of Rivers (Midlands), which traded as The Plain Label Company (PLC Labels).