As announced earlier today, more than 450 jobs are currently hanging in the balance after the troubled owners of the Arjowiggins’ Stoneywood Mill in Bucksburn announced they had gone into receivership in France.
And earlier today the firm confirmed all its UK companies had now gone into administration.
The mill was due to be bought by Dutch company Fineska last year.
However the sale fell through just days after Christmas as a result of “deteriorating market conditions”.
It was hoped that a new owner would be found to safeguard the 314-year-old factory and protect those who work there.
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But the firm’s administration was confirmed by the company earlier today.
A spokesman for Sequana said: “Following the receivership proceedings opened in France at the request of Arjowiggins and some of its subsidiaries, the boards of directors of some of Arjowiggins’ companies in the UK have decided to file notices of appointment of an administrator for the following companies AW UK Holdings Ltd, Arjo Wiggins Fine Papers Ltd, ArjoWiggins Chartham Ltd, AW UK Holdings Ltd, Arjowiggins Sourcing Ltd, Arjobex Ltd and Performance Papers Ltd. These companies operate the mills of Stoneywood, Chartham and Clacton.
“Under the aegis of Administrators, these procedures will help support the measures undertaken to find buyers for Arjowiggins’ businesses.”
Following the news a group of SNP representatives from across the city and shire have written to the Scottish Government Minister for Business, Fair Work and Skills, Jamie Hepburn, regarding the future of Stoneywood Paper Mill.
The SNP group, which included councillors Gill Samarai and Neil MacGregor and MSPs Gillian Martin, Kevin Stewart and MP Kirsty Blackman said: “Hundreds of jobs across Aberdeen and Aberdeenshire could be at risk after plans to find a buyer for the Arjowiggins plant at Stoneywood Paper Mill fell through last week.
“This is, of course, deeply concerning, however, we sincerely hope that with support from the Scottish Government a new buyer can be found as soon as possible to secure a bright future for the plant and the many hundreds of jobs that depend on it.
“As elected representatives, we will do all we can to support your efforts in securing that future for the plant and its workforce.
“We therefore would call for an urgent meeting in Aberdeen with management from Arjowiggins, employee representatives and trade union groups to identify the next steps in our joint effort to keep this historic site in operation.”
See tomorrow’s Press and Journal for all the latest news on Aberdeen’s Stoneywood Mill.