Arvato's planned 115m gravure factory at Speke in Liverpool will be included in the new firm (PrintWeek, 8 July).
Under the terms of the deal, which is still subject to approval by the individual firms and competition regulators, Arvato and Gruner+Jahr will each hold 37.45% and Axel Springer will own the remaining 25.1%
The new firm, which has yet to be named will be made up of Axel Springer's Ahrensburg and Darmstadt factories; Maul-Belser - Arvato's massive 12 gravure press operation in Nuremburg - and G+J Print's Dresden and Itzhoe sites, as well as Speke once it is completed. The new firm will not include Arvato's Italian and Spanish gravure operations.
Meanwhile Arvato confirmed that "big supplements" along with publications and catalogues could make up the workload of the Liverpool site, although a spokesman said no further details regarding what will be printed there would be revealed for several months.
The go ahead for the plant has been widely tipped to hang on News International's supplement contract, currently with Polestar, although neither party has commented.
Further details of the gravure presses for Liverpool have been revealed. Three new KBA TR12B presses with a web width of 4.32m will be installed, along with a further 2.65m press being transferred from one of Arvato's plants.
Arvato and KBA have been working in partnership to develop the presses exclusively.
Maul-Belser is in the process of installing the first machine, with further machines going in to Treviglio in Italy.
Planning application for the 50,000m, 115m Liverpool plant will shortly be submitted.
"We are in regular contact with the local planning authority and understand the process will take around 10-12 weeks," said an Arvato spokesman.
A decision is expected in November, and construction is on track to begin in early 2005.
A recruitment campaign is underway for posts including a human resources director and a purchasing manager. The firm has already recruited Polestar gravure guru Steve Whitehead as director of operations and technology.
Bertelsmann's interim results for the first half of 2004 showed revenues up 3.2% to 5.6bn (euro 8.2bn) and net income up 288% to 377m.
Story by Andy Scott
