Two print centres to close as Fairfax Media and News Corp enter shared agreement
News Corp and Fairfax Media have entered an agreement to share printing presses in a bid to save costs, which will see the closure of two print press sites and the loss of up to 120 permanent and casual jobs in News South Wales and Queensland.
The two major Australian publishers announced this morning they would use each other’s print networks in particular regions across Australia, in an attempt to “reduce capital intensity”.
In New South Wales and Queensland, News Corp will provide printing services for Fairfax Media, while in North Richmond, Fairfax Media will provide services to News Corp.
Fairfax Media will transition work from print centres in Beresfield, NSW and Ormiston, Queensland. Once completed, the two sites will close.
Mumbrella understands up to 120 staff members – both permanent and casuals – will be affected, unless redeployment opportunities can be identified. News Corp has said there will be no redundancies at its sites.
CEO and managing director of Fairfax Media, Greg Hywood, said the production of newspapers will be “more efficient” as a result of the agreement. It echoes his comments from 2016, when he suggested Fairfax would jump on opportunities to work with others on printing services.
Hywood also flagged the company had achieved an 11% decline in costs at the half year results – from savings in staff, technology and print production.
“These are landmark initiatives. They demonstrate a rational approach to the complex issues facing the industry,” Hywood said.
“We expect the combination of the new arrangements, and the changes to Fairfax’s printing network to result in an annualised full-year benefit of approximately $15m.”
Hywood said the company was consulting with staff affected by the arrangements, pointing to “comprehensive assistance and support” for all employees.
News Corp Australia chairman Michael Miller said the agreements demonstrated the publisher’s confidence in the future of print newspapers, adding the agreements would help with scale and efficiency.
“As a publisher, we have absolute confidence in the ongoing significance of newspapers. Within this framework, we need to continue to look at the most effective and efficient ways to produce newspapers,” Miller said.
“This is a commercial deal which makes commercial sense by enabling better use of our existing print facilities.”
The arrangement will have no impact on content for either publisher. The contract, which is solely for commercial print, will commence this month.
It replicates models in New Zealand and the United Kingdom, where competing publications are printed by the same centres.
How on earth will Richmond cope with the weekend printing? Last time I bought print regularly there were systemic late deliveries in my inner city Sydney location which can only have been worse further out.
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About time there is a start for amalgamation of facilities that have been under underutilized for years with the decline of newspaper production.
Its good to see the old rivalry between News and Fairfax has been settled for the sake of economic rationalism
There will more to changes to come- and there needs to be, as newspaper consumption declines
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This was discussed by myself (for News) and Fairfax people in Adelaide at a PANPA conference 20 years ago.
Fairfax were too worried that News would have control.
Terry Waterer
Former Group Projects Co-ordinaries News)
Prior Chief Production Executive Fairfax
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News has a website front-page habit of running “real media watch” which craps on every other news outlet in australia including Fairfax: Can somebody explain to me how they can J-V down at the working end, and nobody says “why u no stop hitting me” up the top because from here, it looks like passive-aggressive behaviour.
Contractually, they’re bound together with strings of money. But, its a slapfest of denial by their editorialist Gerard “my little moue of disapproval means much” Henderson. David Marr is a prat, but they always put him on the couch with Hendo on “insiders” and I wonder what is going on here?
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It’s a historical day as Newscorp and Fairfax announce they’re going to share printing presses. It’s the beginning of the end of newsprint in Australia as we know it. If it wasn’t, either would’ve announced the construction of a new print centre. But they didn’t…. It’s like the Danny Bonaduce fan club has merged with the Partridge Family fan club due to the TV program becoming passé.
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We can all see paper is on it’s way out in the printing business and digital is taking over. Which is a shame being a lover of printed material! But glad to see the giant media companies trying to work together as a team. Who would of ever thought this would happen. What’s the chances!
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