The spend will be used to alter the site to improve efficiency as the business narrows its portfolio to specialise in security print products such as tickets, cheques and vouchers. Although plans are still being finalised, the changes are expected to be in place by April 2019.
The Huddersfield-headquartered business has hired Luke Edwards as operations manager to oversee the transition. The changes are likely to result in around six roles being made redundant at the site, according to the company.
An Adare SEC spokesperson said: “As client needs have evolved, the demand for our traditional print products has declined and therefore, as planned, we will be focusing on our core security print products to continue driving the business forward.
“As part of this investment, and to create a further sustainable business during challenging times across the industry, this does unfortunately mean we are potentially looking into making redundancies – and are working with those affected during a consultation period.
“Our clients have been assured that we are firmly focusing efforts on our core security print products so that we can continue to innovate and deliver the best possible client service.”
Adare SEC currently employs around 80 workers at its 2,790sqm Redditch site, running Xerox Nuvera and Versant digital printers alongside Hunkeler and TRM foiling lines and other cheque production equipment.
The investment is the first major announcement made under the leadership of new chief executive Rachael Nevins, who was promoted from chief financial officer to replace the outgoing Richard Slee in early October.
She said: “The investment is another positive step for Adare SEC during a year which has seen the business transform. The focus is on creating a robust, sustainable business with a real focus on the products and solutions that our clients demand.”
£70m-turnover Adare SEC is owned by UK private equity house Endless LLP along with print management business Adare International, although the two operate separately, having been split in June last year.