The Rochester-based firm was acquired just three years ago, when St Ives expanded its North American business with the 50m purchase of Avanti Press and Case-Hoyt Corporation.

Today (29 January) St Ives announced that it would be issuing notice under the USA WARN Act of its intention to close the facility, which employs just under 300 staff.

The group cited the continuing difficult market conditions in almost all our markets as the reason for the decision, and said that it had been in negotiations with the Case-Hoyt workforce with a view to establishing a cost structure which is sustainable in the current market conditions. Regrettably this has not proved possible and accordingly the facility will close not later than early April 2004. A source close to the company said that the plant was renowned for its high wages.

Case-Hoyt made a loss of $3.3m on sales of around $36m in St Ives last financial year. The firm was established in 1919 and is described as an upscale web and sheetfed printer, producing work for automotive, retail and travel clients, along with annual reports. It runs four webs and two B1 sheetfed presses.

St Ives said that the closure would not affect the US operations of St Ives Burrups.

The closure will cost St Ives around 8m ($13m), and the company will also have to make a goodwill write-off of around 13m.

Story by Jo Francis