Left side advert image
Right side advert image
Super banner advert image
Subscribe to Print Monthly's RSS feed

Enter your email address here to sign up for our weekly newsletter

Business

Arjowiggins falls into administration

The UK operations of pulp and fine paper business Arjowiggins have been placed in administration, a fact that Unite says is ‘attractive’ for a new buyer.

Article picture

The administration is allegedly due to its French-owned parent company’s past legal problems

The businesses within Arjowiggins UK include Arjowiggins Fine Paper, which operates the Stoneywood Mill in Aberdeenshire and a distribution depot in Basingstoke, and Arjowiggins Chartham, which operates the Chartham Mill in Kent.

Other companies which have entered administration today (January 15th), are Performance Papers, Arjobex, and The Wiggins Teape Group.

Joint administrator, Geoff Rowley, who has been appointed to oversee the administration of the Chartham Mill, comments: “Rising pulp prices and energy costs have made trading conditions extremely difficult in this market and the insolvency proceedings begun in France left the directors no option but to place the UK businesses of Arjowiggins in administration.

“We will continue to trade the businesses whilst seeking buyers and would urge interested parties to make contact as soon as possible.”

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

Despite the news, Unite, which has 600 members at Arjowiggins, claims there could be a bright future for the creative paper innovators.

The union, which is committed to working with the administrators and the employers’ body, believes that the administration was triggered by problems experienced by French-owned parent company Sequana, which had been involved in a costly legal dispute with British American Tobacco.

Unite national officer for the paper industry, Louisa Bull says: “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.”

If you have any news, please email carys@linkpublishing.co.uk, or join in with the conversation on Twitter.


Print printer-friendly version Printable version Send to a friend Contact us

No comments found!  

Sign in:

Email 

or create your very own Print Monthly account  to join in with the conversation.


Top Right advert image
Top Right advert image

Poll Vote

Which sector do you see continuing growth in 2019?

Top Right advert image