Polestar printing factory in Colchester to remain open
A printing firm has confirmed that an Essex subsidiary employing about 150 people is to remain open.
The Polestar Group's Colchester premises was facing closure pending a 90-day consultation period which started in January.
It had said the company was facing declining demand and increased costs.
In a letter to the town's MP, the Polestar chief executive said an agreement had now been reached to keep the site running.
Barry Hibbert said this had followed negotiations between management, employees and unions.
'Lifeline' for factory
He wrote: "We have been able to reach a broad agreement that brings about an improved cost base.
"[This] will move Colchester from a loss-making plant to a profitable free cashflow solution."
Mr Hibbert said it was "a lifeline upon which to build and the factory will remain open".
Exact details of the agreement are not yet known.
Liberal Democrat MP for Colchester, Sir Bob Russell, said: "These are difficult times for the UK printing industry and I did fear upwards of 300 jobs could be lost.
"From my earlier discussions with union leaders and the company's chief executive, I sensed both sides were keen to achieve a positive outcome, if that was at all possible."
The site at Severalls Industrial Park has six print presses, as well as binding, mail and distribution services.