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Consignia has submitted plans to build a mail distribution centre in Central Park, Rugby, which could create up to 840 jobs.

Consignia is looking at possible sites near Derby, Burton and elsewhere in the Midlands to set up a regional mail distribution hub, which could create hundreds of jobs.

Consignia is set to lose its monopoly in public postal services sooner than expected, following proposals from Postcomm to open up the market for bulk business mail to new operators within eight weeks.

Consignia and Opus Trust are forming a Leicester-based joint venture called Optecon, in order to provide direct mail and billing services with a workforce of 120.

Consignia is considering plans to set up cut-price local postal services, which would compete with its own Royal Mail business and deliver bulk mail for large customers.

Consignia is planning to build a £150m postal distribution centre near Heathrow airport by 2002, where it will employ 800 staff.

Consignia is investing £50m on computer equipment designed to make its system compatible with the Link network of cash machines, which will enable customers to use debit cards at 40,000 post office terminals around the country.