The Consett-based operation services the county council, as well as seven district councils under the County Durham unitary authority.
According to Inprint manager Charlie Stephenson, the investment has already begun to make a saving.
He said: "We were outsourcing longer runs and more complex folding jobs, but now we have brought the work back in-house we are saving a regular expense.
"Doing the work in-house has helped us increase the amount of jobs we can complete. Our delivery times are faster because we are no longer tied to waiting for outside operations to fold and send the work back."
The AFC546A can run at 40,000sph and has a 200-job on-board memory store with a 17-fold pattern pre-selection programme.
Inprint produces all B3 litho and digital printed literature for the council and external charities.
County Durham Council invests in Horizon AFC564A folding machine
County Durham County Council's in-house print facility Inprint has installed a Horizon AFC564A combination folding machine from Graphic Arts Equipment.