By: Editorial Staff PACIFIC PRESS, THE Southam Inc. division that publishes the Province and Vancouver Sun, said it selected a site in Surrey, B.C., for a new production and distribution plant. Construction is to begin early next year and last for up to a year. Press installation and testing may take as long as another year, with printing expected to commence in late 1997. Separate production of the two morning papers on letterpress equipment in Vancouver and on flexo presses in a plant at another location in Surrey will be consolidated at the new 13.8-acre site, which will house new MAN Roland offset presses (E&P, Aug. 5, p. 22) and more than 300 employees. The move is part of a major Pac Press investment that also will relocate the papers' offices from the existing Granville Street site to a new downtown office that will be electronically linked to the Surrey plant. Pac Press will have computer and satellite links to other Southam papers and advertisers.