The UK Competition and Markets Authority has cleared the proposed combination of News UK and DMG’s printing operations, as a result a new company will be created to run the combined print and primary distribution operations.
The companies believe the joint venture will help improve the efficiency of News UK and DMG Media’s print operations and establish a sustainable business model for the future of national newspaper printing in the UK.
The joint venture will retain the three current Newsprinters sites in Broxbourne (Hertfordshire), Knowsley (Merseyside) and Eurocentral (Glasgow); meaning the closure of DMG Media sites in Thurrock (Essex) and Dinnington (Sheffield). DMG Media will retain sole ownership of the Carn print site in Northern Ireland which is unaffected by the joint venture.
The combined plants are expected to print more than three million newspapers a night and almost 22 million a week.
The joint venture will operate independently, with its own senior leadership team drawn from Newsprinters and DMG Media. Darren Barker, currently Managing Director of Newsprinters, will become Chief Executive, while Julia Palmer-Poucher, currently Group Production Director at DMG, will become Chief Operating Officer. The new company is expected to go live in early June.
News UK Chief Operating Officer, David Dinsmore, said: “It has been our long-term view that consolidating print operations is vital to retaining a national network of print and distribution logistics and, crucially, supporting the unique plural media landscape in the UK.”
DMG Media Group Production Director, Julia Palmer-Poucher, added: “The news industry has transformed and continues to change rapidly. We needed to make changes to our print capacity to underpin our commitment to our print titles and their readers.
“This was a difficult but necessary step to provide a sustainable future for our print operations. Whilst I am saddened that our sites will close, this decision ends a period of uncertainty and allows us to proceed.”
The joint venture is limited to printing operations and does not represent closer working between News UK and DMG Media on media, editorial or commercial activity.
In response, the NFRN’s National President Muntazir Dipoti, said: “Newspapers are extremely important to Fed members, which is why we adopted our Pro Print strategy and why we welcome any developments that ensures the sustainability of the printed word.
“This joint venture will do just that, as well as ensuring the continuation of a national network. We, therefore, welcome the CMA’s decision. However, as the two publishers involved produce some of the UK’s biggest selling newspaper titles, we will be monitoring developments carefully to ensure there is no detrimental impact to our members’ businesses.”
