Last year, NI paid JP £30m to escape a contract to print its titles at Portsmouth after the News of the World closure meant it was paying for capacity it no longer needed.
Now the company has paid JP a further £10m to terminate a contract to print Murdoch-owned titles at its Dinnington plant, near Sheffield.
No jobs will be lost and the cash will go towards reducing JP’s debt liabilities which, according to its annual results for 2012, now stand at £319m.
The latest development was revealed in a statement issued by Johnston Press this afternoon.
It read: “Johnston Press plc (“Johnston” or “the Company”), one of the leading multi-platform community media groups in the UK and Ireland, announces that it has reached agreement with News International (“NI”) in exchange for a payment to Johnston of £10m to terminate NI’s printing contract at Johnston’s Dinnington (near Sheffield) facilities. The Company and NI intend to enter into arrangements in due course relating to provision of printing by NI to the Company.
“There is no planned headcount reduction as a result of this agreement and Johnston will explore new contract printing opportunities with immediate effect in order to maximise returns from the premium quality capacity at Dinnington.
“The proceeds will be applied in further reducing Johnston’s net debt and interest cost.”