A new Ovato on-demand book printing unit in Melbourne will address demand in the eastern states and Amazon's market entry.

Ovato Book Printing, previously the Griffin Press division of PMP, is backing up new Konica Minolta digital print systems with equipment moved from its South Australia base.

The $1 million investment responds to an increase in book sales in Australia. Ovato print and distribution chief executive Adrian O'Connor says the development will enable it to meet the needs of publishers large and small.

It will target new clients as well as telling existing one ab out the opportunities created by on-demand printing.

The Konica Minolta-anchored digital print unit at Clayton will result in five new jobs being created there, while the South Australia unit - which has web-fed HP digital equipment - will continue without loss of jobs.

Equipment at the refitted book production centre in Clayton will include two 250 ppm A4 mono bizhub Press 2250s, fed by Tecnau DocuSheer roll feeding systems, and an AccurioPress C6100 colour press. Guillotines and binding equipment is being brought across from Adelaide, and capacity will increase from 50 to 5000 books a day.

O'Connor says the entry of Amazon - which charges "fines" against suppliers unable to satisfy orders - is a partial driver of the moves.