The 16in-wide (406mm) machine is due to be installed in May and will produce two-colour labels. The bespoke model includes components from three different, unspecified kit manufacturers.

Chief executive Chris Marsh said: “We believe this fully automated machine will be the most efficient in Europe and will include butt-splicing without compromising speed.”

Hamilton Adhesive Labels has 65 employees, a £12m turnover and a 4,000sqm manufacturing and warehouse base in Leicestershire.

Marsh, who said the firm is looking to add £3m to its turnover over the course of the next year, recently took on a third MPS EF press, an eight-colour UV flexo machine. It runs alongside four label converting machines.

“It sounds a cliché but our success is down to our state of mind: every problem is an opportunity, so if a customer has a stock problem or has been let down by another company, we step in,” said Marsh.

His business, established in 1993 in Bardon, makes printed and plain labels for the food and drink, industrial, personal and household care sectors.

Operations director Paul Larkin added: “We have worked hard over the past two years to deliver operational excellence at Hamilton.

“We have a market-leading level of process control in place now that differentiates our product and service offer in the market.

“Backing this with new investments and an enhanced marketing programme is going to see Hamilton step forward as a leading player in 2018.”