Smurfit Web Press and Lithographic Universal is set to combine to form Lithographic Web Press Limited, a 50-50 joint venture between the Jefferson Smurfit Group and the Lithographic Group. The new company will be located at the Smurfit Web Press site on Botanic Road in Dublin.
Current over-capacity in the Irish printing industry and increased competition from UK and European printers were cited as the catalysts for the merger.
The new company will have an annual turnover of €35m, and will be the largest player in the Irish high volume, colour printing market.
The two plants currently employ 169 people and this will be reduced to 144 when the merger is complete. It is expected that the reduction of 25 in the number of employees will be achieved by voluntary means.
The executive chairman of the Lithographic Group, Cormac McAlinden, will become executive chairman of the new company. Tom Mooney, currently chief executive of Smurfit Web Press will become the new chief executive.
