• STV
  • MySTV

Hundreds of paper mill jobs at risk after deal collapses

The Arjowiggins' Stoneywood Mill announced administration proceedings have been initiated.

Collapse: Stoneywood Mill.
Collapse: Stoneywood Mill. STV

Hundreds of jobs are under threat at Aberdeen's last paper mill after a takeover deal fell through.

The Arjowiggins' Stoneywood Mill in Bucksburn, which employs around 500 workers, was due to be bought by Dutch company Fineska BV last year.

The proposed sale of business fell through shortly after Christmas as a result of "market trading conditions".

Owners then filed for receivership earlier this month after the sale of the mill collapsed.

However, on Monday, the company announced that administration proceedings have been initiated.

In a letter to MSP Mark McDonald, Scottish business minister Jamie Hepburn confirmed the news.

He wrote: "I am concerned to learn that the proposed sale to Fineska BV has now fallen through.

"Unfortunately, the negotiations initiated in July 2018 with Fineska BV ceased due to market trading conditions outwith the control of the company."

He said: "Today the company has now announced that administration proceedings have been initiated.

"Arjowiggins are hopeful that administration offers the best opportunity to find a buyer and safeguard the jobs in Aberdeen."

Mr Hepburn added: "The Scottish Government, its enterprise agencies and local partners will be doing everything possible to try to secure a positive outcome."

Commenting on the announcement, East Labour MSP Lewis Macdonald said: "It's a great cause for concern that the proposed sale has collapsed, and that the company has now initiated administration proceedings.

"The news will come as a real disappointment to the workforce and the local community.

"It's vital that the Scottish Government and Scottish Enterprise now make every effort to find a new buyer and to keep Aberdeen's last paper mill open."

Joint administrator Iain Fraser, partner with FRP Advisory 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."

A number of SNP representatives in the north east have contacted Jamie Hepburn - Scottish Government Minister for Business, Fair Work and Skills - regarding the mill. 

The joint letter was sent by MSPs Gillian Martin and Kevin Stewart, MP Kirsty Blackman and local councillors Gill Samarai and Neil MacGregor. 

They said: "The news is of course deeply concerning - however we hope that with the support of the Scottish Government a new buyer can be found as soon as possible. 

"We will continue to do all we can to support the Scottish Government's efforts to secure a bright future for the plant and the hundreds of jobs that depend on it. 

"We have invited the minister to an urgent meeting with Arjowiggins management, employee representatives and trade union groups to identify the next steps in our joint effort to keep this historic site in operation."

Download: The STV News app is Scotland's favourite and is available for iPhone from the App store and for Android from Google Play. Download it today and continue to enjoy STV News wherever you are.

One account. All of STV.

This field is required. That doesn't look like a valid e-mail format, please check. That e-mail's already in our system. Please try again.
ShowHide
Forgot password?
This field is required. This must be at least 6 characters long. Did you enter your details correctly?
If you've forgotten your details then use the 'Forgot password?' link.
Need to reset your password?

We'll send a link to reset your password to

We've sent you details on how to reset your password

Please check your email and follow the instructions.

Forgotten your email address?

Have you forgotten the email address that you previously joined with? Don't worry, by emailing enquiries@stv.tv we can help.

One account. All of STV.

This field is required. Please enter at least 2 characters
This field is required. Please enter at least 2 characters
This must be at least 6 characters long.
ShowHide
This field is required. This must be at least 6 characters long.
You must be over 16 to join STV.
This field is required. This doesn't appear to be a valid date
We need this to check that you live in an STV region.
This field is required. This doesn't appear to be a valid postcode
Would you like us to email you about our great shows and services from time to time?
We'll only send emails we think you'll like (see example) based on information you have supplied and shows you have watched on STV Player. For details on emails and advertising, see our STV & You page.
Would you like to receive emails from the Scottish Children's Lottery about draws, instant games and competitions?
We support the Scottish Children's Lottery (SCL), which is managed by our colleagues at STV ELM Ltd. You can find out more about the SCL on its website, including its Privacy Policy.

By continuing you agree to our Terms of Use, and understand our Privacy and Cookie Policies.

Upload Profile Picture

Please make sure your image is under 2mb in size and a valid JPG, PNG or GIF.

Are you sure?

Unfortunately, you'll be unable to access our premium content. We’ll be sorry to see you go, but if you change your mind you can rejoin us at any time.

Please verify your STV account

Please verify your STV account using the email we sent you. If you have lost the email, we can send you another one, just click the button below.

Thanks

We've sent you a new verification email.
Please check your email and follow the instructions to verify your account.

Welcome to STV
Thanks for joining us.

Oops!

Sorry, you must be at least 12 years old to place a vote for your Real Hero.

Please review our Voting Terms of Use for more information.

Oops!

Sorry! It seems that you are using a browser that is incompatible with our voting service.

To register your vote please copy the below URL in to your regular mobile browser. We recommend Google Chrome, or Safari.

http://shows.stv.tv/real-heroes/voting

Oops!

Sorry, you seem to have already voted in this category.

Thanks for voting

Now share your vote with friends on your social network

Share on twitter Share on facebook

Cast your vote

Please register or sign in to continue.

Cast your vote

This field is required. This doesn't appear to be a valid date

Cast your vote

Please fill out this form to cast your vote. As you are under 16 years old you will not create an STV account. Why do we need these details?

This field is required. Please enter at least 2 characters
This field is required. Please enter at least 2 characters
This field is required. That doesn't look like a valid e-mail format, please check.
Location This field is required.
Parental Consent This field is required.

That's you. All that's left is to click the 'Submit Vote' button below. By doing so, you confirm that you and your parent or guardian have read and accept our Voting Terms of Use, Privacy Policy and Cookie policy, and that the details you have entered are correct. We'll look after them as carefully as if they were our own.