Sources close to the negotiations say that Wifag, sold in the UK by Manchester-based Janus Technologies, is the favourite over rival KBA in the final running for the spend.
The order for Elsham Wold, which will replace Northcliffe's Hull, Grimsby and Lincoln plants and is planned to be operational by the end of 2007, would be Wifag's second installation in the UK.
Its first has recently been commissioned at Trinity Mirror's Oldham site, in a deal with Guardian Media Group.
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