The 15m-turnover firm, which was founded in 1999 by multimillionaire Saga heir Peter de Haan, will launch the service at its 7,900m Leicester site in June.

OTM's direct mail arm will move to Swindon, where the firm already runs a 6,000m fulfilment plant, to make room for the two presses. "Our strategy is to create two centres of excellence," said managing director Kris Prashad.

"In Leicester we will focus on the high added-value end of the print and transactional mail business while using our skilled workforce in Swindon to meet the demands of the direct marketing and fulfilment markets," he said.

The first iGen3 was installed this week, with the second arriving in the coming days.

Prashad said that the investment had been made "on the back of contracts which should be signed very soon".

Some staff from the DM operation at Leicester will move to the site's new digital print department, while some will move to the transactional mail side.

Prashad said that there may be "one or two" redundancies, but plans for these are not yet finalised.

Story by Josh Brooks