"Regrettably no offers were received for the loss-making carton plant, and therefore the decision was taken to close the facility from 23 April 2004," said group managing director Giles Sergant.

Sergant said that while he expected 95 staff to be made redundant, he was hopeful that at least 20 could be deployed within the group.

The 15m investment in Washington will include relocating the group's Sunderland-based DM and Newcastle-based Clean-Pack operations to the new site, to open early next year.

Sergant said this would make the group more efficient, and improve production times and waste management processes. Works Councils are to be set up at the new plant "to ensure that all staff interests are incorporated into our plans from day one".

Reed Print & Design's 2,500m2 Washington, Tyne & Wear plant was destroyed by fire last November (PrintWeek, 27 November 2003).

Washington Fire Brigade's Arson Task Force sub-officer Alfie Moon said the cause of the blaze had never been ascertained, due to the extent of the damage.