The investment marks the biggest leap forward in the history of Davies Brothers, Tasmania's leading newspaper company, which publishes the two biggest selling titles in Tasmania, the Mercury and the Sunday Tasmanian.

News has yet to make the final decision on which press manufacturer will supply its new machine. However whoever wins the order will supply a press that will enable full colour printing on every page up to 80 pages. Additional equipment will offer full trimming, stitching, gluing and folding capabilities, as well as automated inserting.

A new plant will be constructed at Technopark, north of Hobart, which will replace the current press in Argyle Street. The new building will house a single width five tower press, as well as conveying, stacking, product finishing and automated inserting equipment,

Hartigan says, "This investment underlines our commitment to newspaper publishing in Australia, and in particular to the terrific team in Hobart who will be able to produce an even finer newspaper in the future."

Davies Brothers managing director Tony Yianni said: "This is the biggest investment our company has made in this state and it will give a terrific boost to our business and to the many businesses who advertise with us.

"It will allow us to provide a significant new range of services to readers and advertisers and will dramatically enhance the quality of our publications, which are already highly regarded and are leaders in the Tasmanian marketplace. That excellent and hard-fought-for reputation is a tribute to our team at Davies Brothers."

Tasmanian Premier Paul Lennon yesterday welcomed the announcement, saying it demonstrated great confidence in the strength of the state's economy.

"I congratulate News Corporation on the faith it is showing in Tasmania and encourage other companies to follow its excellent example,'' he said.

"It is excellent to see a long-standing Tasmanian company reinvesting with an eye to the future. Ongoing investment in Tasmania, like the Mercury's new printing press, is exactly what we need to keep growing our economy and creating new job opportunities and prosperity in our State.'

All other operations of the newspaper group will continue to be based in the heart of the city at 93 Macquarie St, in its landmark art-deco HQ, where the company was established more than 150 years ago.

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