Newscorp and Fairfax Ink Landmark Printing Deal
Aussie newspaper giants Newscorp and Fairfax have put their differences aside for a new printing agreement which will see the publishers using each other’s printing networks.
In a statement on the ASX, Fairfax explains Newscorp will be providing a range of printing services for Fairfax in NSW and QLD. Fairfax will print publications for News Corp out of its North Richmond plant.
Fairfax will transition work from its print centres in Beresfield, NSW and Ormiston, QLD. Once complete, those sites will close.
The will be no change to the availability of Fairfax newspapers.
This move is reflective of the struggling printing industry as mergers and acquisitions plague the Aussie printing landscape. Both Newscorp and Fairfax have been struggling financially in their news department with ad revenue as more readers switch to social media and digital platforms to source their daily news.
Greg Hywood, managing director at Fairfax says, “The printing arrangements make the production of newspapers more efficient for both publishers. There are landmark initiatives. They demonstrate a rational approach to the complex issues facing the industry.
“Better utilisation of existing print assets makes sense and will deliver economic benefits to Fairfax Media.”
Hywood says this agreement delivers greater cost variabilisation, enabling the companies to produce papers in the future.
He says, “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. The financial benefits are expecteto begin towards the end of FY109 H1.”