Polestar and the GPMU are set to start a 30-day consultation period about the future of the Polestar Greaves bindery after massive trading losses.

The firm said that last weeks preliminary negotiations with the GPMU, which were described as open and honest, failed to find a resolution to propel the bindery into profit.

If no agreement to reduce the cost-base arrives the binderys 65 jobs could be lost, out of a total of 290 at the plant. Polestar revealed that Greaves was on course to make a 5m loss this financial year to September.

Polestar chief operating officer Chris Pavlosky said: Greaves is faced with making a massive loss this year. It has plenty of work, but at market prices. Last week we had discussions about the bindery company, but so far we have been unable to bridge the gap. This week were filing an HR1.

Pavlosky said that the Greaves plant faced stiff competition from printers on the continent, which had a 15% price advantage due to the comparative weakness of the euro. At the moment were talking to and have things on the table with the press chapel, but we think that we can bridge that gap. With regards to the bindery we are still seeking solutions and dont want to close production down. But the bindery has to move into profit, said Pavlosky.

If the Greaves bindery is closed it is likely that titles currently bound at the plant would be transferred to other group companies, while Greaves inline stitching capability on its gravure machinery would be exploited.

However, without a bindery the long-term future of the entire plant appears bleak, although Pavlosky was quoted in the Scarborough Evening News as describing closure as a "worst case scenario".

Last week business at Greaves was dealt another blow after PrintWeek revealed that Guardian Newspapers will move production of the Guardians Weekend supplement to Polestar Purnell near Bristol.

Story by John Davies