ICSM Business News: one of the UK’s ‘big beasts’ of manufacturing is to shut down completely despite receiving millions of pounds in Government cash

The Stoneywood mill in Scotland. Mpic Express and Journal.

ICSM Business News: one of the UK’s ‘big beasts’ of manufacturing is to shut down completely despite receiving millions of pounds in Government cash

 By Harry Mottram: A company that has its roots in the 18th century is to shut down completely leaving hundreds of workers out of a job. With its origins dating back to the 18th century Arjowiggins mills have been producing paper for industry making it one of the ‘big beasts’ of British Industry. Now sadly things have changed and the business is no longer viable say the owners. Writing in the trade website Print Week Jo Francis takes up the story: “Administrators from Interpath Advisory were appointed at ten Arjowiggins Group UK subsidiary businesses four weeks ago, including its Stoneywood paper mill near Aberdeen and the Chartham mill in Kent. The closing date for indicative offers in the sale of the businesses passed at the end of last week.” She reported that The Stoneywood mill has been making paper since 1770, while Chartham has been in operation since 1738 long before the establishment of the United States and before the French Revolution. Now 463 staff will lose their jobs following the 368 let go when the company entered administration. Print Week said: “Arjowiggins had received £12m in funding via Scottish Enterprise including support for the 2019 MBO that rescued the business after the failure of its then-parent company Sequana. In its first full year of trading, to 31 December 2020, AW Creative Paper Group filed sales of £99.9m and made a pre-tax profit of £92,840. It received £3.65m in government grant income during the period. The Arjowiggins mills in Spain and China are not part of the administration and continue to trade.” Ian Carrotte of ICSM who have many members in the printing and allied trades as members said it was a tragedy that such a key part of the paper industry had collapsed. He said: “ICSM understands there was a considerable level of debt left from the change of ownership in 2019 with losses building up. Then the Covid crisis hit and with mounting interest rates and inflation it comes as no surprise there were problems. Suppliers will be hit as will the printing industry as a whole with one less paper manufacturer in the UK. It’s a black day for industry.”

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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk


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