Wyndeham acquired St Ives Web last month (6 April), including facilities at Peterborough, Plymouth and Roche.

Yesterday (24 May), the company entered into a consultation with the 145 employees at the renamed Wyndeham Plymouth plant.

Unite national officer Steve Sibbald said that the move was not a surprise because of consolidation currently taking place throughout the sector.

But he added: "It is slightly surprising that they have done this so quickly. I thought maybe they would wait a few months, maybe six months, and then take a decision like this."

The union expects consolidation in the sector to continue. Last year Wyndeham closed its Southern Binders facility, St Ives has walked away from the sector altogether and Polestar is currently going through a major restructure.

Meanwhile BGP, which recently made redundancies in its sales team, made headline news when it ended its relationship with Future Publishing. It is understood the contract was ended because BGP, considered a commodity printer, was not happy with the price.

Sibbald said: "BGP turning away work because there was no value to it was a huge indication that this sector is beginning to turn. Its those three magic words - supply and demand. Inevitably more consolidation will be needed before demand outstrips supply but it is slowly becoming a profitable industry again."

Meanwhile strikes at Wyndeham Impact continued last week, with two more two-hour walkouts. A fourth week of strikes are expected this Friday.

Sibbald added: "The members' resolve appears to be hardening, the longer this goes on the more difficult it is going to be to get a resolution, BA is a perfect example of that.

"Guys in this sector, not just at Impact, are sick to the back teeth of this, they have taken cuts all over the place and they won't stand for anymore. It is almost certain that an increase in action is just around the corner."