Trinity Mirror in £45m printing deal with rival Guardian Media Group

The Newspaper publishers Trinity Mirror and Guardian Media Group yesterday announced plans to invest £45m in printing equipment in Oldham, to begin production in 2006.

The Newspaper publishers Trinity Mirror and Guardian Media Group yesterday announced plans to invest £45m in printing equipment in Oldham, to begin production in 2006.

The contract, initially a 15-year deal, is for Trinity Mirror to print GMGs regional titles in the North-west using advanced printing machinery, developed by the Swiss firm WIFAG, to be used for the first time in the UK. Costs for the project are being split equally between the two companies.

The new technology will allow for improved colour print quality throughout the newspapers which Trinity Mirror and GMG hope will drive growth in advertising revenue. Until now the Oldham production facilities allow colour printing only on the front page.

The facilities will be rolled out over two years with completion due in June 2006. Both companies said the investment will also provide revenue opportunities for existing titles. GMG's flagship nationals, The Guardian and The Observer, are unaffected.

Greater Manchester Newspapers, a subsidiary of GMG, publishes North-west titles such as the Manchester Evening News and the Salford Advertiser. Sly Bailey, the chief executive of Trinity Mirror, said: "This collaborative approach will deliver greater value for all concerned." Ian Ashcroft, the chief executive of GMG Regional, said: "The move ... means all GMG's regional newspapers in the North-west will be printed in full colour at the same plant."

Trinity Mirror shares closed down 8p at 630p.