Speculation is heightening that Polestar will be the main beneficiary of Associated Newspapers' review of its supplement production and that this is the "new business" cited by the firm as the reason it has accelerated the press installation schedule at the Sheffield greenfield site.

However, the future for Polestar's own massive supplement contract with News International has simultaneously been drawn into question.

The NI contract is understood to involve more than 1m worth of print and polywrapping a week for Polestar. The bulk of the work is handled by Varnicoat and Newspac, but Greaves and Purnell are also regularly used to handle the volumes involved.

Although the contract does not expire for four years or more an NI spokeswoman has confirmed to PrintWeek that the publisher and Polestar are currently "in discussions about the renewal of the contract beyond 2008". However, Polestar chief executive Barry Hibbert said: "All contracts are there for discussion and renewal and it's no different with NI".

Sources on the Continent say that Arvato's still-to-be-confirmed gravure plant in Liverpool hinges "on a signature from NI".

Meanwhile, there is still no official comment from Associated Newspapers. Its existing contract with Quebecor World expires next May and negotiations have been ongoing for several months. A source close to Associated said the publisher was "getting closer" to a decision and those close to the negotiations believe a decision is imminent. The mammoth contract accounts for more than 50% of Quebecor World's UK sales of 87m and involves the production of more than 500m magazines per annum.

Story by Jo Francis