The company has also sold its production property in Bern to heavy-duty transmission manufacturer Mali International.

Wifag has undertaken a series of cuts over the last year, making 300 staff redundant in October and announcing further cuts last month that left the Wifag subsidiary of Wifag/Polytype Holding with just 63 staff.

The two sides of the business have now been brought together in Fribourg, also in Switzerland. Mali International has reemployed a number of staff at Bern and will manufacturer some Wifag parts that Polytype cannot.

In a statement sent to customers, Wifag chief executive Werner Tschan said: "Capacity adjustments in the order of magnitude made by Wifag are always a very painful process.

"We look ahead and see numerous chances for the new Wifag as a lean enterprise in the newspaper printing machine business. The new Wifag will be able to offer, with the exception of the manufacturing of new machines, a substantial part of the past services without change."

"The emphasis will be on press extensions, reconfigurations, as well as retrofits. In addition, innovation will again be a driving factor for the future."