Parent company Adare Group funded the 150,000 investment in undisclosed new kit and software, which will be operational in April.
The second phase is currently "under evaluation" by Adare and will mean Halcyons warehouse facilities will increase by 3,800m2 to 11,800m2.
Halcyon marketing manager Bev Myers claimed the firm had doubled sales in direct mail over the past 18 months, so it needed to extend its production area to improve turnaround.
Halcyon Business Solutions, which offers print management as well as direct mail, has sales of more than 30m and employs 280 people at Park Mill.
Have your say in the Printweek Poll
Related stories
Latest comments
"Thank you for the opportunity to comment on this Jo, and PrintWeek!
Please feel free to get in touch with the Howden Print Team to arrange your own Free of Charge Cyber Micro-Penetration Test to help..."
"I never quite understand the statements such as "achieved such a positive outcome for this well-established business".
The established business unfortunately failed and no longer exists, a..."
"Genuinely sorry to read this."
Up next...
Commitment, presence and energy will be much missed
Tributes paid to Lascelle Barrow
Around 300 roles may be affected
International Paper to close five UK packaging sites
Asset ownership delayed process
Reflections to be liquidated
'Start of a new era'