Chief executive Barry Hibbert revealed the plans at the groups annual staff conference and awards ceremony last week.

The 100m represented the largest 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 clients.

Theres been a lull [in gravure] in the past two years but were starting to see a recovery, Hibbert said.

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

However, as the 3.88m wide gravure press ordered earlier this year after consultation with key customer News International will effectively become one of the presses for the greenfield project, it seems that the UK will be favoured.

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 Cerutti and is looking at superwide 4m-plus machines. We will place orders before Christmas. We have to weigh up whether that technology leap to 4.3m is justified and whether the risk/reward is worth it, Hibbert added.

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 our decision, he said.

One continental gravure printer commented: It could well be a move to discourage other people from doing the same thing.
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 Q2 of 2004.
Polestar Chromoworks managing director Mike Young will head the project, reporting to a board-level steering group. Peter Greaves will move from Petty to become site director at Chromoworks, while Lindsay Atkinson moves from Greaves to fill the Petty role. Andy Reynoldson will be acting site director at Greaves.