A merger between Smurfit Web Press and Lithographic Universal has created the largest colour printing operation in the Republic.
The merged company will be known as Lithographic Web Press and will be a 50/50 joint venture located in Glasnevin, Dublin. A spokesman said the deal was a "pure merger" with no money changing hands.
The influx of overseas printing operations and the consequent downward pressure on prices was the main reason for the merger, the companies said. There was serious "over capacity" in the industry, said a statement, and the industry had no "long-term future at current cost levels and is badly in need of consolidation".
The combined entity will have an annual turnover of € 35 million, making it the largest player in the high volume, colour-printing market. Bray-based Lithographic will start to transfer equipment to Glasnevin in July and the merger will be completed by next March.
The merger will involve 25 people taking voluntary redundancy, leaving 144 people working in the merged firm. The chief executive of Smurfit Web Press, Mr Tom Mooney, will be chief executive of the new company, with Lithographic chairman Mr Cormac McAlinden becoming executive chairman.
Mr McAlinden said the deal would allow the merged firm to compete with the big players in Europe and open up new markets. Lithographic Universal was founded in 1966 in Bray.
In 1997 it made a € 12 million investment in new equipment and premises. While most of its business is centred at home, it also trades in the UK, the Netherlands, Denmark and the United States.
Smurfit Web Press grew out of the amalgamation of two long-established print companies, Browne & Nolan Limited and Richview Press Limited.
It holds a number of lucrative magazine printing contracts and regularly prints newspaper supplements for regional and national titles.
Mr Mooney said the arrangement would secure the future of 144 jobs and two businesses.
"The combined operations will provide customers with a more competitive service, as well as improved flexibility, faster turnaround times and a wider range of services spanning pre-press, print and bindery."
