The firm has announced it will shut its finishing and bindery department early next year.

The news comes less than four months after 190 workers were made redundant at Polestar's printing factory in Havers Hill, Eastfield.

The Dunslow Road finishing and bindery plant will close in January after a period of consultation with local union representatives and officials.

Bosses at Polestar say investment in factories in other parts of the country has resulted in the decision to close its Scarborough operation.

Catherine Hearn, chief operating officer, said: "The finishing lines we have acquired give us the opportunity to relocate finishing from Greaves to our other print sites, thereby improving efficiency and reducing transportation.''

Andy Reynoldson, managing director, said: "We are extremely grateful to all our employees for the continued commitment they have shown to Greaves and its customers. This brings an end to Polestar's long history as an employer in Scarborough; I think all of us associated with Greaves wish it could have been longer."

The finishing department has continued to bind and wrap magazines for leading publishers including, The Telegraph, Bauer, News International, Observer, IPC and Express.

Scarborough MP Robert Goodwill says the news will come as a massive blow to the workers involved.

He said: "After the print factory closed I think it was just a question of time before questions arose about the viability about bringing products to Scarborough just to have them finished and bound.

"This news couldn't have come at worse time, with the economy struggling as it is."

Tom Fox, leader of Scarborough Council said: "This is a massive disappointment for the town, especially when you consider all the investment which is being poured into Scarborough Business Park.

"A priority for the council now must be to keep working with Yorkshire Forward, the County Council and others to make sure that investment keeps coming to the town."