Up to 40 new jobs could be created at a Washington-based envelope company following a recent acquisition.
Encore Envelopes Ltd, the largest privately-owned printed envelope manufacturer in the UK, has taken over the UK arm of Spanish firm Tompla Envelopes.
One of the main suppliers to the UK market for the past three decades, Tompla is the third largest envelope manufacturer in Europe.
Under the ownership of Encore, its UK base in London will be retained as a sales office, while production shifts to the North East.
“This is an extremely important move for us as not only have we secured 230 jobs in a declining marketplace, but we will have to bring in more people and we’re delighted about that,” said managing director Russell Croisdale.
“The other key point is that it takes away one major competitor and brings us a new range of clients.
“We believe we can now improve on the business we’ve acquired.”
Originally known as Washington Envelopes, the North East firm was established in 1984.
In 2006, it merged with Encore Direct in York to form Encore Envelopes Ltd. The following year, Croisdale, along with finance director Mike Williamson and production director David Cooper, took over through a management buy-out.
For the last few years, turnover has been stable, with the November 2012 results showing a full-year figure of £30m.
Encore, which supplies everyone from print management companies to retail giants like Tesco, has also won a number of global awards for its print process.
However, the envelopes market is dwindling, with a 8% drop reported last year, so more innovative measures have been required to stay ahead of the game
Last year, the company invested just over £1m in new additional envelope equipment as it looked to develop new market places both in the UK and Europe.
It has also created a new company, Encore Packaging Solutions, to take on the growing market for packaging and e-commerce deliveries.
It is hoped the new acquisition will allow Encore to produce over one billion additional envelopes per year.
As to the medium-term future, Croisdale said the firm may explore further expansion into European markets, but for now would concentrate on making the most of its new situation.
“It’s about looking at our strengths and for us those lie in having a really great, flexible workforce that have been with us for a long, long time,” he said.
The company also has a sales office in West Yorkshire. The new deal was financed by assistance from RBS Invoice Finance.
Legal advice was provided by Langleys Solicitors.