The printing operation of the Sunday World is facing a major challenge after losing three significant printing contracts, staff were informed yesterday.
The company Terenure Printers Limited prints the Sunday World and Star newspapers but has lost contracts with the Farmer's Journal and Buy & Sell magazine. The Farmer's Journal is now printed by The Irish Times at City West.
Printing staff were told by management at a briefing session yesterday that Express Newspapers had also ended its contract with Terenure Printers. A management team told staff this would have a "material impact" on the profitability of the operation.
The Terenure printing works produced the Daily Express on behalf of Express Newspapers for some time and the loss of that business places a question mark over the future of the operation, which employs more than 150 people.
The decision by Express is a curious one as it is a 50 per cent shareholder in the Star newspaper with Independent News & Media (IN&M). The two companies work closely on that project and they took a decision last year to introduce a Sunday edition of the tabloid.
An IN&M spokesman said management were anxious to replace the lost business. He said increased printing capacity had been introduced to the Irish market in recent years and the Terenure business was operating in a highly competitive environment. However, he said a sale of the Terenure site had not been proposed.
Journalistic staff from the Sunday World moved into IN&M offices on Talbot Street last year and, since then, questions have been raised about the printing works. It is understood the property on Rathfarnham Road would be highly valuable. Most of IN&M's titles are now printed at a modern plant in CityWest.
The Sunday World is believed to be taking action against the Farmer's Journal in relation to the termination of its contract.
Terenure Printers is a wholly owned subsidiary of IN&M. Among the directors are Michael Brophy, managing director of the Sunday World newspaper, and Gavin O'Reilly, chief operations officer of IN&M.
The financial position of Terenure Printers is not known as the company claims an exemption as a subsidiary of IN&M.
Last year, IN&M introduced a major outsourcing programme, which has resulted in significant savings. It has also exited non-core businesses such as mobile content company iTouch.
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