ONE of West Somerset's largest employers was today (Friday) due to complete a merger with a rival firm to secure its future following years of redundancies and cut-backs.

Contemporary Printers Ltd, in Williton, has negotiated a deal which should be signed today with Cannings Packaging Ltd, of Avonmouth, Bristol.

The new company will be known as CPack Ltd, but details are not expected to be released until next week of how the merger would affect management, jobs or production within either business.

Contemporary Printers managing director Howard Berry would not comment on suggestions the merger would see much of the Cannings business relocated to Williton, bringing with it the prospect of extra jobs.

Mr Berry, cautious about saying too much before the legal agreement was formally signed, told the Free Press: "A deal is on the cards but there is many a slip twixt cup and lip. It would be good news for both businesses, definitely."

Mr Berry said the merger idea had been around for some time but it was only in the last few months that serious talks began.

Contemporary Printers and Cannings were remarkably similar companies in a small flexible packaging marketplace.

Mr Howard said because the industry was small, everyone knew one another's business.

"These are people we regularly meet, just as we do with many other competitors," said Mr Berry.

The two companies each had similar-size workforces of around 60 employees.

The turnover of Cannings at about £11 million a year was greater than Contemporary Printers, although the Bristol firm was less profitable.

However, while Contemporary Printers was a specialist printer of luxury wallpaper, the majority of the Cannings business was in plain film and bag production.

"We are the experts in print and they are the experts in plain film and bag-making, and the two go together well," said Mr Berry.

Both firms were created by management buy-outs only a few years apart.

Contemporary Printers was formed when Mr Berry led a buy-out of the former Watchet based Protective Papers Ltd in 1989.

The business was relocated two years later to a £2 million, purpose-built 43,000 square feet building on Williton's Roughmoor industrial estate.

Cannings was once part of Bridgwater based British Cellophane Ltd, which then became Courtaulds plc.

It was set up as an off-shoot of BCL to use side reels and waste product from cellulose film.

A management buy-out in 1991 saw Cannings become established as an independent business.

Contemporary Printers had nearly 100 workers at its peak in 1991 but has since gradually reduced the number of jobs.

Earlier this year, the remaining staff accepted a temporary 25 per cent cut in wages to help save their jobs and the firm's future.

A crisis was triggered when a large customer went into receivership with £138,000 still owed to Contemporary Printers.

However, some of the unpaid wallpaper was recovered and two-thirds of it was sold on to make a return on its production.

Workers were back on full pay in November after 16 weeks of cutbacks.

Mr Berry said: "We had a lot of problems earlier in the year but things are certainly going a lot better now."

He said although the New Year was a traditionally quiet period for Contemporary Printers, the firm was doing more business than at the same time in 1999.