Yesterday (2 December), Stralfors began a consultation employees at its Redruth Forms facility, in Cornwall, as it seeks to adapt to changing market conditions.
It is expected that 32 roles will be made redundant, however, the company has said that 10 new roles will be created in the transactional mail division.
The restructuring is expected to be completed by the end of the first quarter of next year.
Stralfors announced that capacity at Redruth Forms would be reduced, but the company would continue to manufacture forms for its own direct customers' use. Capacity will remain to produce forms at other European plants for UK customers.
The production capability for its specialist printing business in the Gaming and Security sectors will not be affected, Stralfors said in a statement.
John Carter, managing director of Stralfors UK, PrintWeek's Environmental Company of the Year 2009, said: "Although the margins in the Forms market do not allow us to make a satisfactory return, we are having great success in our transactional mail business and have run out of production space at our Redruth factory.
"It therefore makes sense to reduce capacity by taking out some old presses and to concentrate on profitable business and solutions using new technology. While these actions will unfortunately mean some positions may become redundant, there will be opportunities created in other parts of the business."
Stralfors' Orpington, Kent-based operation, which it opened in 2005, will remain largely unchanged, focusing on daily fulfilment, critical and intelligent direct mail applications.
The company has recently invested in excess of £1.5m in new Buhrs BB700 intelligent inserting lines and Xerox iGen colour printers.
Carter added: "The Forms business now accounts for less than 20% of our revenue and makes no positive contribution to our profitability.
"Our vision for the future is clear. We believe we are extremely well positioned to be a premier provider of end-to-end solutions enabling businesses to communicate with their customers."
