Planning permission has been granted to construct an 11,000m2 facility, almost twice the size of the previous facility, which was destroyed last November by fire.

The new factory will also accommodate its operations in Sunderland and Newcastle, bringing everything under one roof.

"Building work will start later this month," said Reed Print & Design chief executive Giles Sergant. "We expect the builders to hand over the site around the middle of next year and we will move our operations across shortly afterwards."

The firm is investing 15m with 8m earmarked on the "latest generation machinery and systems".

Investment will include two Heidelberg Speedmaster presses, 12- and six-colour. In addition a new Heidelberg Suprasetter platesetter will be installed in a state of the art air conditioned pre-press suite and the whole factory networked using JDF.

Reed's service includes direct marketing, pharmaceutical printing and packing. The extent of the damage at the old Washington facility was so severe, that the cause of the fire was never established.

Earlier this year Reed closed its packaging plant in Gateshead with 95 staff made redundant.

Story by Philip Chadwick