The firm, a joint venture between Arvato, Gruner+Jahr and Axel Springer, began clearing the riverside site close to John Lennon Airport to the south of the city last week.

The 50,000sqm plant, which will house two 4.32m-wide KBA presses and one 2.65m-wide machine, is expected to be operational by next summer and will reach full capacity with more than 400 staff by 2008.

Prinovis Liverpool managing director Bob Robinson, the former managing director of Arvato's US book printing subsidiary Berryville Graphics, witnessed the start of work with local MP Maria Eagle.

Robinson said: "This is an exciting time for us... Our first wave of employees will be fully prepared for the start of the first presses next summer."

Garston Labour MP Eagle described the project as "a shot in the arm for the Liverpool economy".

She said: "The facility is a major boost to the region and signals the rebirth of a once famous industry on Merseyside."

Staff induction and training began in March, and 30 staff are currently training at Maul-Belser's site in Nuremberg, Germany. Prinovis expects to have around 150 staff in training by the end of the year.

The firm said that the plant would print home shopping catalogues and mailings as well as newspaper supplements, but declined to give details of clients for those areas.

News International is the only named customer for the plant so far. Supplements for The Sun, The News of the World, The Times and The Sunday Times will be printed there from 2008.

Story by Josh Brooks