According to Guardian Products managing director Matthew Nichols, the investment will enable the company to bring finishing in-house, broadening its product portfolio.

Four Folding Services employees have been taken on by Guardian Products, which will also move the business into its Bury St Edmunds site in December.

Folding Services went into liquidation with Steven Law of Ensors on 4 October 2010 after running into financial problems during the recession.

The company provides a number of services including specialist folding. Guardian Products is now searching for an operations manager to run the strengthened facility.

Nichols said: "Folding Services was a very good supplier to our business for many years. It fits a strategic intention to offer a one-stop-shop for print finishing through to mailing.

"The company was able to do a lot of things that other finishers can't do and we believe the two companies are a great fit. It will be fantastic to bring their expertise in-house. We will also be able to do things that perhaps we didn't have the confidence to try when finishing was not on site, such as in-line gluing."

Guardian Products is owned by Precision Direct Marketing. The group has a turnover of around £7m and employs 50 staff.