The print and print management group said the move resulted from its previously announced capacity review, which would lead to the creation of production "centres of excellence".

Leeds, which is already a large production plant, will become the centre of excellence for DM and will house Altrincham's (formerly Broad-print) manufacturing assets. The group said "current manufacturing levels" would be transferred to Leeds, while the sales, customer service, data bureau and reprographic teams will go to Manchester.

The move is expected to result in exceptional costs of 6m, of which 4.6m will be a cash charge (this is expected to be funded out of exceptional property profits). A further 1m will be required for capital investment to support the relocation.

Construction of a 9,200sqm transactional printing "centre of excellence" is underway in Liverpool. It will be used to service the 250m 10-year HSBC deal, announced at the start of this year.

In its latest trading statement, posted on 11 April, Communisis said Q1 profits were ahead of expectations but added that print and direct mail remained "challenging" with "overcapacity and deflationary pricing".

It also revealed at that point that David Jones was standing down as chief executive, but would remain in place while a successor was sought.

Communisis in 2006
Jan Announces 250m HSBC deal; reveals sale talks are over
Mar Announces '05 results and plans for 5m share buy-back
April Chief executive David Jones says he's standing down
May Reveals plans to consolidate DM production in Leeds