Chief executive Barry Hibbert revealed the plans at the groups annual staff conference and awards ceremony yesterday (9 December).

The 100m represented the largest ever single investment at the group and was a one-off, not part of the normal cycle, Hibbert said.

The cycle over the past few years has been heavily geared towards web offset and the rationalisation of our web offset businesses, he added.

Hibbert said the group had been considering the option of a greenfield gravure plant for the past two and half years and made the decision to build it after positive talks with customers.

There has been a lull [in gravure] in the past two years but we are starting to see a recovery, Hibbert said.

He added that the group's shareholders were fully behind the plan. It is a lot of money to ask for but they did not need much persuading of the industrial logic.

A UK location for the 65,000m2 plant is not a foregone conclusion. Sites are being considered in mainland Europe (Hungary is a likely option) as well as in various locations across the UK, including Yorkshire, Derbyshire, Lancashire and Stoke on Trent.

Finance director Peter Johnston said the group would be looking into the grants available. We would like it to be in the UK but the numbers have to stack up, he said.

The final location will be decided upon in the new year and construction of the plant will begin immediately thereafter. Presses, of which there will be two initially, are due for installation within 12 months and the group will announce its chosen supplier imminently. It has been in negotiations with both KBA and Cerruti and is looking as superwide 4m-plus machines.

Hibbert, who stressed that the site would be a 100% Polestar venture, said he was unperturbed by talk of another greenfield gravure plant in the Yorkshire area that a German group is said to be considering.

Theyve got to run their business and weve got to run ours. It wont influence or change our decision, he said.

Investment in finishing will include 16 new binding lines across the group and will comprise Muller Martini, Ferag and perfect binding equipment. Installation will begin in the second quarter of 2004.

The group is also planning to press ahead with investment in its existing e-commerce technology to deliver real-time information to customers. It claims it will establish the most comprehensive CRM programme in the industry.

Polestars results are due to be released in the second week of January. For the second year running we have gone against the grain of the industry and grown our profitability, and this has given our shareholders the confidence to support our major investment plans, Hibbert said.