Allied Press operations director Ray Clarkson said printing The Southland Times would allow Allied Press to better utilise its staff and machinery and help improve efficiencies.
The Fairfax Group, the owner of The Southland Times, sub-contracted out much of its work throughout its group, but being an independent publisher meant Allied Press had no large group to fall back on, he said.
"This ensures we are putting more work through our own printing works, which helps retain staff here."
The deal would see The Southland Times receive a better quality product and, in return, Allied Press would meet its commercial commitments on quality and delivery standards, Mr Clarkson said.
Fairfax New Zealand chief executive Allen Williams said in an email to staff the decision to close the Invercargill print plant was not taken lightly but Southland's printing press was ageing and had colour restrictions.
Fairfax had two options - to upgrade the press at a cost of about $10 million or to share the printing resource with industry partner Allied Press.
Seven full-time staff would be affected by the change and could potentially lose their jobs. A further 13 part-time roles would also be affected.
