The £500,000 press was installed at NSD’s manufacturing facility in Dalkeith near Edinburgh at the end of October.
The company looked at rival machines, but production manager Martin Miller said the narrow-web press pipped rivals on productivity, versatility and intelligent colour automation.
It has joined an existing line-up including a Xeikon 7300 and conventional machines such as three Galluses, two AB Graphic Digicons and two Nilpeters.
Miller said: “The split between our existing Xeikon and the new HP Indigo will complement our conventional business.
“We can do two passes: one in conventional and one in digital. If a customer wants 20,000 labels we can run them off digital kit, for 20 million we can use litho machines.
NSD International UK's 45-staff supply self-adhesive labels and on-pack promotional products to food, drinks, personal care, pharmaceutical and agri-chemicals sectors.
The company makes a turnover on £6.5m but Miller expected to nudge this to £7m within a year, at a “conservative” estimate.
“We hope the new purchase will free up more work for the Xeikon and save our conventional capability. It's a better fit to be able to offer both technologies to the market.”
He added that possible new apllications included more packaging work, pouches and cartons because of the Indigo's substrate flexibility.
“It will open up a lot of revenue streams. Our company serves high-end whisky brands, with high demands on quality. The HP complements that very well.”
Thye machine's ElectroInk technology was the only digital colour printing process that matched gravure printing, he added, saying that high-resolution printing and good registration offers the distinctive packaging envisioned by designers.
NSD International UK managing director Neil Mills said: “This will be a great addition to our production capabilities and keep us at the forefront of digital label manufacturing in the UK.
“The press adds to our existing digital and flexographic capabilities to meet the needs for high-quality, short-run orders and fast-growing artisan businesses.”
NSD International was one of the first UK label manufacturers to introduce digital label production. The company, formerly known as the Simpson Label Co, has been incorporated in the UK for over 150 years and has a global head office in Rotterdam, Holland.