Polestar chief executive Barry Hibbert downplayed the loss of the NI contract, understood to be worth more than 1m a week, saying that it would not seriously affect the company.

"Polestar has already replaced the volume with new contracts from Associated Newspapers and The Telegraph Group, whose supplements are scheduled to be printed at the group's new gravure printing facility in Sheffield from May," said Hibbert. "The four years before the end of the News International contract gives us the opportunity to win additional titles from within the UK but also from continental Europe."

Speculation that Arvato's plans in Liverpool were dependent on a signature from NI first emerged in June, although confirmation did not come until yesterday.

Arvato has also named the managing director, and launched a recruitment drive, for the quayside site. Bob Robinson, currently vice president of operations at Arvato's US book printing subsidiary Berryville Graphics, is to relocate to the north west to take up the post.

The company is looking to fill further posts in IT, production control and post-press. It is also recruiting a chief financial officer.

Construction at the plant is now set to start during the coming weeks, after Liverpool City Council gave planning permission for the 50,000sqm factory in December.

Story by Josh Brooks