Astron chief executive David Mitchell said negotiations were taking place with employees at the Lenton site, which could see them transfer to other Astron sites.

He declined to comment on a report in the Nottingham Evening Post that the plant at Lenton would close.

Experian's print and mail division provides personalised statements and credit card mailings for utilities and financial services clients.

A spokesman for Experian, a subsidiary of GUS, said the business would transfer to Astron in early August.

"It [Astron] has indicated to us it will look to relocate the business within its own operations.

"In the meantime we are doing our best to help those employees who do not want to move," he said.

"It was suggested by Astron that it could provide a better service to our clients in the future, and talks followed," he said.

The spokesman said the business, was not core to Experian's business and would have required substantial of investment.

"Its more of an outsourcing deal than acquisition and is effectively an extension of our relationship," said Mitchell. "This helps to underwrite our strategy with the Edotech acquisition," said Mitchell.

Astron bought Edotech for 130m in April.

Edotech was merged with Astron Print and Mail to form a new division, Document Solutions.

At the time Mitchell stated his intention was for further acquisitions, and to create a 1bn group within five years.

Story by Andy Scott