Thursday, 28 Mar 2019 13:03 GMT

Future of Arjowiggins UK sites secured

Following the announcement that Arjowiggins had entered administration in January 2019, a preferred bidder for its three UK sites has been secured.

Iain Fraser, Tom MacLennan and Geoff Rowley of FRP Advisory were appointed by Arjowiggins as joint administrators and have been overseeing the administration process.

In a statement reported by the BBC, the administrators say: “The joint administrators have selected a preferred bidder for Arjowiggins Fine Papers operations at Stoneywood in Aberdeen and in Basingstoke, and Arjowiggins Chartham in Chartham, Kent.

“The proposed deal is for the sale of the assets of the business as a going concern, and the retention of all remaining staff. Subject to the satisfactory conclusion of due diligence, it is hoped that the deal will conclude around the middle of April.”

The largest of the mills is the 300-year-old historic Stoneywood Mill in Aberdeen. The site currently employs almost 500 members of staff, the future of all of which have been in jeopardy since the firm went into administration.

This news will come as a relief for both the workers, and the local community

Speaking to the Evening Express, councillor Gill Al-Samarai, who represents the area says: “This news will come as a relief for both the workers, and the local community. The paper mill is a massive employer in the area, and I am glad a positive outcome appears to have been reached.”

If the deal goes ahead, 482 jobs would be saved at Stoneywood, 28 in Basingstoke and 86 at Chartham.

It is believed by Unite that the administration was triggered by a costly legal dispute between British American Tobacco and French parent company Sequana.

Joint administrator Geoff Rowley also put the difficulties down to rising pulp prices and energy costs.

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