The division is investing 1m-plus, which will involve the installation of one of the first HP Indigo w3200 web presses in the country.

Poyle-based Lorien, which ordered its w3200 in February, is set to take delivery of the press in October 2004, around the same time as St Ives will install its machine.

St Ives' spend includes an s3050 sheetfed model and Hunkeler finishing equipment to work inline with the w3200. The company is also making a major IT and software investment with HP Production Flow, DirectSmile image personalisation and e-business software from Printable Technologies.

The business is relocating its graphics services wing from Bradford to Leeds, and the new kit will be installed at the refurbished 10,000m2 Leeds site, alongside its existing data processing, mailing and laser printing operation.

St Ives installed its first Indigo press in 2001 and this machine is likely to be swapped out as part of the upgrade.

Dave McGolpin, managing director of the 100m division, said the group saw a "big opportunity" for the sophisticated direct marketing offering possible with the upgraded facility and will be targeting existing and new clients.

"The timing is right, I think it's coming of age now," said McGolpin.

Story by Jo Francis