Buyer being sought
500 jobs at risk as costs force paper mill into administration
A buyer is being sought for Arjowiggins Fine Papers, which has operated from the Stoneywood Mill in Aberdeen since 1770.
Joint administrators Iain Fraser, Tom MacLennan and Geoff Rowley, partners at FRP Advisory, said there were no immediate redundancies at the firm.
A number of other Arjowiggins’ UK businesses, including the Chartham Mill in Kent, have also been placed in administration.
The UK companies are part of the Creative Papers division within Sequana, a listed French manufacturer and distributor of paper, packaging and print solutions. The administrations of the UK businesses follow a petition on 8 January by Sequana to begin receivership proceedings for Arjowiggins’ French subsidiaries.
Arjowiggins Fine Papers has a turnover of £120m. The joint administrators will continue trading all the businesses whilst seeking a buyer and are urging interested parties to make contact as soon as possible.
Mr Fraser said: “The Stoneywood Mill in Aberdeen has a long tradition and reputation for producing fine and creative papers of the very highest quality for a global customer base.
“Unfortunately, the business has been severely affected by rising costs and difficult trading conditions, and the insolvency proceedings begun in France left the directors no option but to place the UK companies in administration.
“We will continue to trade the business whilst exploring all options for securing a future for the site.”