The group plans to merge its Tunbridge Wells-based multimedia business into the Crayford site of point-of-sale specialist Displaycraft, which relocated to its brand new 6,040m2 site in 2001. Displaycraft was formerly part of St Ives Direct, but became part of the multimedia division last year because of the synergies between the businesses.

Tunbridge Wells is on several levels, while Crayford is a modern manufacturing facility, explained chairman Miles Emley. We will move substantially all of the equipment, with the probable exception of two older presses.

Major customer Deluxe has also switched work from Kent to Multimedias Blackburn plant.

Up to 40 jobs are set to go as a result of the relocation, and St Ives has begun consultations with the workforces at both sites; Tunbridge employs 140, Crayford around 70. It expects to iron out the details by June, with the move taking place over the summer.

The consolidation is set to cost the group around 4m. Earlier this month St Ives announced it would take a 21m hit on the closure of its Case-Hoyt operation in the United States.

Multimedia was one of the few bright spots in St Ives last financial year, achieving significant sales growth from 21.6m to 26.7m, despite subdued market conditions.

St Ives shares rose by 17.5p (4.4%) to 420p after the announcement.

St Ives is expected to announce plans for a significant upgrade of its Peterborough web plant soon. MAN Roland and KBA have been battling for the press order.

Story by Jo Francis