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.
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