HUNDREDS of Scots workers' jobs are at risk after a historic paper mill was placed into administration.
Arjowiggins Fine Papers at the Stoneywood Mill in Aberdeen which has been in production for nearly 250 years is one of a number of UK businesses being plunged into insolvency from French parent company Sequana.
The Aberdeen mill on the banks of the Don has been in operation since 1770 and has a turnover of £120 million but now 489 staff face the threat of redundancy, along with 29 based in Basingstoke, Hampshire.
The firm filed petition on January 8 to begin receivership proceedings for various subsidiaries in France.
Unite the union has reacted with anger and confusion following the announcement saying there only on Monday local management had told local stewards it was not in administration.
The union's paper industry national officer Louisa Bull said: “Arjowiggins is a vibrant and innovative creative paper company, and we can see a bright future as it is an attractive proposition for a potential buyer.
“Unite is committed to working with the administrators and the employers’ body, the Confederation of Paper Industries to find a new owner.
“We have had a good relationship with the company over many years and this is a good basis for exploring options for a new purchaser.
“The administrators being called in should be seen in the context of the parent company’s Sequana past legal problems. It is not related to Brexit uncertainty.
“However, we appreciate that this is a very difficult time for our members and their families, and Unite will be giving them maximum support in the days and weeks ahead.”
Tommy Campbell, Unite industrial officer, stated: “Unite is seeking clarity about the position of the site. If it is indeed the case that the company is in administration, we will seek an urgent meeting with representatives of the company as well as the Scottish Government to see what can be done to find a buyer and save jobs at this site.
“This is an anxious time for staff at the plant, and for the local economy of the North-East. Stoneywood has been a very successful business for almost 250 years, and these workers and their families deserve a future after contributing the most into making this site a profitable and continuous success for generations.”
Business Minister Jamie Hepburn said the Scottish government and Scottish Enterprise were ready to help.
In a statement, Sequana said the boards of directors of some of Arjowiggins' companies in the UK had decided to file notices of appointment of an administrator for several companies: AW UK Holdings Ltd, Arjo Wiggins Fine Papers Ltd, ArjoWiggins Chartham Ltd, Arjowiggins Sourcing Ltd and Arjobex Ltd Performance Papers Ltd.
"These companies operate the mills of Stoneywood, Chartham and Clacton," it said.
"Under the aegis of administrators, these procedures will help support the measures undertaken to find buyers for Arjowiggins' businesses."
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