BT is to begin printing the Phone Book directory overseas for the first time in its history, having awarded the annual 22 million copies print run to Spanish firm Einsa Print International.
The move will come as a blow to Goodhead Group, which is owned by the printing millionaire and Reading football club owner John Madejski. The firm has run the printing contract for the past eight years or so.
It is understood BT's decision was ma
de on price alone, although Goodhead has complained the short period of notice has left it unlikely to find additional work to use up the printing capacity established at its Colchester operation for the BT contract. There are likely to be job cuts among the 180 staff based there.
Goodhead was taken private by Mr Madejski in 2000, and the firm banked a pre-tax profit of £2.5 million in the year to May 2004, according to recent accounts.
Elinsa prints a range of directories and catalogues including Spain's Paginas Amarillas.
Since disposing of Yellow Pages, BT has bolstered the content of the Phone Book, which it now promotes as a "three-in-one directory" featuring classified advertising as well as telephone numbers.
It is understood that the new contract covers only the printing process with the Phone Book business continued to be run from the UK.
The full article contains 250 words and appears in Edinburgh Evening News newspaper.
