Fairfax Media and News Corp Australia have entered a new arrangement to share printing networks and reduce production costs, affirming print’s longevity.
The commercial agreement set to begin this month will see News Corp provide Fairfax with seven-day printing services in NSW and Queensland. Fairfax will print some publications for News from the North Richmond Print Centre in outer north-west Sydney.
The deal will offer Fairfax annualised full-year benefits of around $15 million to be seen toward the end of 2019. News Corp did not release any projections.
Fairfax chief executive Greg Hywood described the “landmark initiatives” as a “rational approach to the complex issues facing the industry”.
News Corp Australiasia executive chairman Michael Miller echoed the sentiment, saying the deal provided the benefits of scale and efficiency.
Both publisher heads said the deal reaffirmed the companies’ commitment to newspapers and the viability of print into the future.
“The agreements deliver greater cost variabilisation, enabling us to produce newspapers well into the future,” Mr Hywood said.
The availability of Fairfax mastheads will not be affected as a result of the change.
Fairfax’s Beresfield and Ormiston print centres, in NSW and Queensland respectively, will be decommissioned once the full migration of printing services is complete.