The group, part of media empire Bertelsmann, is considering a Euro100m-plus investment in the UK if it can secure the right clients.
"Our analyses as well as discussions with potential customers have pointed to insufficient supply there," stated Arvato president Hartmut Ostrowski (pictured), as the business unveiled its 2003 results today. If the economic argument stacks up, Arvato will build the plant, Ostrowski added.
Arvato is already in the process of expanding its gravure operations on the continent, with huge investment projects underway in Italy, where it is spending more than Euro100m on a new gravure plant; and at Maul-Belser in Germany where it has built a new production hall to house two 4.32m wide gravure presses the largest in the world.
In the UK it is looking at two possible sites, understood to be in Derby and Sheffield. The go-ahead for the plan hinges on gaining a commitment from a major client, with News International tipped as Arvato's primary target.
"We are talking to a lot of potential clients, but we won't comment about any before approval," an Arvato spokesman told PrintWeek.
News International's supplements are currently printed by Polestar, which has a number of years left to run on its contract with the publisher.
In response to Arvato's announcement, Polestar chief executive Barry Hibbert said: "For a new plant to make sense they have got to get those weekly customers and we're in the way, so there's a slight complication. News International are under contract at the end of the day it will be 2008 at the earliest if NI is their target.
"It won't change our plans either way, we've always banked on a new entrant coming in to the UK, and our plans are based on that," Hibbert added.
Polestar has just contracted with two key suppliers for its own plant. See earlier story.
Arvato declined to comment on how or whether Polestar's gravure plans would affect its own decision-making.
Speculation regarding Bertelsmann's intentions in the UK has been ongoing since autumn 2002, when it was believed the group lay behind the Howitt gravure superplant plan.
Story by Jo Francis
