Jobs hang in the balance as PMG plans closure of former Paragon Printing site

The decision by parent Print Media Group (PMG) to close the factory marks an inauspicious end to the site at the centre of last year's high-profile administration drama.

The plant has been known as South Pacific Print Group (SPPG) since being acquired by PMG in late April 2010 following more than a month in administration.

The plant, which once employed more than 150 people along with sister company Moore Office, now has fewer than 80 people, and their fate is unsure.

In a statement, PMG managing director Leo Moio said: "We have today advised the team at South Pacific Print Group that it is our intention to progressively close the Wodonga manufacturing facility over the coming months. It is extremely disappointing to be forced to make this decision; however we must consider the wellbeing of our group as a whole.

"Due to significant market changes, work for the Wodonga site has been and will continue to be dramatically reduced to the point it has become unviable as a separate operation. We will be working with our staff onsite to ensure a professional closure that minimises impact on existing customers.

"We will retain select equipment which will be transferred to our other group locations. Some SPPG staff will have the opportunity to relocate to our sites in Dandenong South and Heidelberg in Victoria. We will work with other members to provide support and flexibility to find alternate employment."

"We would like to take this opportunity to thank the staff at Wodonga for their efforts and professionalism. They are an extraordinary group of people and we have been very impressed with their commitment and skills," Moio concluded.

No mention was made of Tabcorp, but it seems likely that the loss of volume associated with this work was a deciding factor in the planned closure.

It is believed that much of the volume feeding SPPG's presses was for Tabcorp's $10m-plus "venue consumables contract" with print management company Moore Australasia, which was recently awarded to Blue Star following a re-tendering process.

Tabcorp would not comment when contacted by ProPrint.

PMG general manager sales & marketing Lisa Stark would not be drawn on specific reasons for the closure. "There are many factors involved in this decision."

She said PMG was trying to work with Wodonga staff "as personally and professionally as possible".

"Those people have been fantastic and we have been most appreciative of their fabulous attitude."