Polestar has announced plans to close its Newspac facility with the loss of 78 jobs, in June, at the end of its £1m a week contract with News International, which has been gradually phased out since it was awarded to Prinovis Liverpool in 2005.

A period of consultation has begun with local union representatives and staff at the site regarding the closure, which Polestar stressed would not affect neighbouring Polestar Varnicoat.

Phil Boynes, managing director of Polestar Varnicoat, said: "With the completion of the News International contract and the current market conditions, there is sadly insufficient work to maintain the operation of the facility.  We will of course work with the employees during this extended consultation period to ensure every opportunity for re-employment is explored."

Meanwhile, consultation is also underway at Polestar Sheffield, where an initial proposal to cut around 25 jobs has now been replaced with 12 proposed redundancies – an offer that is currently being considered by the workforce.

Commenting on the Sheffield jobs, Unite national officer Vernon Robson said: "The long and short of it is there are redundancies. They are taking a polybagging shift away and there will be 12 redundancies. We have a couple of volunteers and the redundancies won’t take place until 10 April.

"There is a downturn in polybagging work, we are comfortable with it. There was an alternative plan to make 25 redundancies, but we sorted that out. There are not going to be any more redundancies at Sheffield, the staff are secure, it is the most secure place in the Polestar Group."