North-east jobs blow as paper mill goes into administration
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An historic north-east paper mill at Stoneywood in Aberdeen which is one of only two left in operation in Scotland has gone into administration with the loss of more than 300 jobs.
Stoneywood paper which has operated at the site for over 250 years was sold to a new parent company back in 2019.
Administrators have now been appointed at the Arjowiggins Group mills at Stoneywood, along with a site at Chartham in Kent with 368 of the group's 463 UK-based employees made redundant immediately.
It is understood a total of 301 out of 372 members of staff have been made redundant in Aberdeen.
Ninety five members of staff have been retained by the administrators to continue activity across the two sites while they explore any possibility of a sale of the sites and assets.
Blair Nimmo, chief executive of Interpath Advisory and joint administrator, said: "Arjowiggins has a long and proud history dating back more than 260 years, so this is immensely troubling news for UK and Scottish manufacturing.
"Unfortunately, and following on from the severe challenges posed by the pandemic, the significant economic headwinds which have been impacting industrial manufacturing businesses up and down the country, including skyrocketing energy costs and spiralling input prices, have proved to be overwhelming for the group.
"The management team has asked that we pass on their sincere thanks to all employees, customers and suppliers, plus Scottish Enterprise, for their strong support during these very difficult times, and they would like to express their deep regret that there was unfortunately no other option available for this historic group."
Commenting on the news local MP Richard Thomson said: “This is devastating news for the workforce and the whole team at the Stoneywood Mill.
“The mill has a proud history and makes specialist papers with a quality that is hard to match anywhere else.
"However, it’s clear current trading conditions, not least the recent sudden rises in the cost of energy and raw materials, have pushed the business into its present difficulties.
“Together with local MSP Jackie Dunbar I’m looking to hold an urgent meeting with the administrators to see what further might be done to help those who have been lost their jobs, and to discuss the options for preserving papermaking on the site with the aim of retaining as many jobs as possible.”
Shauna Wright, of the Unite union, said: "This comes as a huge blow to our members who stood by the mill through the last administration and welcomed the management buyout, which gave them so much hope for the future.
"That hope has been shattered."
