Tim Bowdler (pictured), Johnston Press chief executive, said that it was still "too early" to say whether the project, which is widely expected to include the world's first installation of Goss' compact Flexible Printing System, would continue.

"We will want to get in there and look at the press room and its needs, as well as the needs of the market," said Bowdler.

TSP's previous owner, Press Holdings, which belongs to Telegraph Group proprietors the Barclay brothers, invested in a new Ferag mailroom for the plant over the summer.

It also secured planning permission in August for a 750sqm extension to the Newhaven Road site in Edinburgh, which currently runs a 15-year-old Goss Colorliner press.

The deal, announced on Monday, marks the latest stage in Johnston's drive to consolidate the newspaper industry, following a 320m spree in 2005 to acquire three local newspaper groups in Scotland and Ireland.

Bowdler declined to comment on any future spending plans, which may include all or part of for-sale rival Northcliffe. But he joked that there would be no further acquisitions "this side of Christmas".

Under the deal, Johnston will take control of Caledonian Offset and four newspapers: The Scotsman, Scotsman on Sunday, Edinburgh Evening News and weekly free title Edinburgh Herald & Post.

Bowdler added that |delivery of the triple-width MAN Roland Colorman destined for Johnston's 60m Sheffield plant would begin next month. He said that both Sheffield and the revamp of its Portsmouth site were "on track".

Johnston's millions
2005 acquisitions
- The Scotsman Publications 160m

- Score Press 155m

- Leinster Leader 93m

- Local Press Group 65m

Print investments
- Sheffield 60m

- Portsmouth 45m

- Peterborough 11m

- Total 588m