INVESTMENT in new machinery and more jobs will follow the takeover of a Keighley

labels and packaging supplier.

SA Labels Ltd. based in Oakworth, which supplies labels, flexible packaging and graphic services, will boost operations at its present site after being acquired by the Mansfield-based Reflex Group, which employs more than 500 people at 14 sites and is on track for a £70 million turnover this year.

Reflex which was established in 2002 through a management buy-in of Yorkshire-based Easdale Labels, has promised further investment in Keighley where S A Labels employs 42 people.

Founded in 1984, S A Labels has sales of around £6 million and is one of the UK’s largest printers of bespoke labels for the beverage, food, personal care and beauty industries.

Jonathan Hutton, managing director, will stay in his role alongside sales director Mike Reynolds.

Ian Kendall, Reflex chief executive, said: “We are very pleased to have brought this high quality business into the group. It’s profitable with a great team and everyone at Reflex is looking forward to integrating it into the family and moving forward together.”

Jonathan Hutton added: “Being part of the Reflex Group will allow SA Labels to further our reputation for innovation and customer service and allow us to enter the next exciting phase of growth and investment.”

Meanwhile, Bradford-based label manufacturer Watermill Press has won a half million pound contract after investing more than £100,000 in bespoke label finishing equipment.

Watermill Press developed a custom made rewinding machine in partnership with Yorkshire based machinery manufacturer AB Graphic, enabling it to make specially designed identification and tracking labels for cases and pallets of goods in transit from manufacturers to the large supermarkets .

The deal with a prominent high street food and drink retailer will enable it to track products throughout the distribution chain to the point where products are displayed on its store shelves.

Dale Deacon, Watermill Press managing director, said: “From a business perspective we are reaping the rewards from the investment almost immediately as it’s a significant contract win for us.

“While the equipment has been designed and built for that major client’s requirement, it is relevant to a host of other businesses in the food and drink industry, and the transport and logistics sectors.

“We expect it to be much sought after and to become a significant, additional income stream in the coming years."

Earlier this year, Watermill Press invested more than £1 million in expanding its range of label printing and converting machines.