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Hundreds lose jobs as mill closes Hundreds lose jobs as mill closes
(20 minutes later)
Over 350 jobs are set to be lost after it was decided Inverurie Paper Mill is to close. More than 350 jobs are set to be lost after it was decided Inverurie Paper Mill is to close.
International Paper has announced the mill in Aberdeenshire will shut by the end of March as no financially viable alternative has been found.International Paper has announced the mill in Aberdeenshire will shut by the end of March as no financially viable alternative has been found.
Mill manager Chris Melia said: "We are saddened to bring papermaking to an end in Inverurie."Mill manager Chris Melia said: "We are saddened to bring papermaking to an end in Inverurie."
First Minister and local MSP Alex Salmond said: "This is a big blow to the workforce and the community."First Minister and local MSP Alex Salmond said: "This is a big blow to the workforce and the community."
The Amicus union has already said it is concerned about compensation levels for the workers at the plant. Our focus now is on helping our people make the transition into new employment and to continue our efforts to market the site Chris MeliaMill managerThe Amicus union has already said it is concerned about compensation levels for the workers at the plant. Our focus now is on helping our people make the transition into new employment and to continue our efforts to market the site Chris MeliaMill manager
The history of papermaking in the town goes back more than 150 years.The history of papermaking in the town goes back more than 150 years.
International Paper acquired the historic mill in 1996.International Paper acquired the historic mill in 1996.
Its future has been hanging in the balance since news of problems emerged in October.Its future has been hanging in the balance since news of problems emerged in October.
There were some expressions of interest, but none progressed.There were some expressions of interest, but none progressed.
Mr Melia explained: "We have acted to match machine capacity worldwide to the paper volumes demanded by our customers.Mr Melia explained: "We have acted to match machine capacity worldwide to the paper volumes demanded by our customers.
"Our focus now is on helping our people make the transition into new employment and to continue our efforts, working with government agencies and other, to market the site for future reindustrialisation.""Our focus now is on helping our people make the transition into new employment and to continue our efforts, working with government agencies and other, to market the site for future reindustrialisation."
'Economic recession''Economic recession'
Mr Salmond said the losses were "an enormous number in a community of this size".Mr Salmond said the losses were "an enormous number in a community of this size".
He said: "When the decision was first announced last October that there was to be a 90-day consultation period starting in November we were hopeful that another paper maker could be identified to take over production.He said: "When the decision was first announced last October that there was to be a 90-day consultation period starting in November we were hopeful that another paper maker could be identified to take over production.
The workforce have been terrific in sticking with the plant over the 90-day period Alex SalmondFirst Minister and local MSPThe workforce have been terrific in sticking with the plant over the 90-day period Alex SalmondFirst Minister and local MSP
"However, despite the best efforts of Scottish Enterprise, that has not proved possible in the prevailing economic recession."However, despite the best efforts of Scottish Enterprise, that has not proved possible in the prevailing economic recession.
"There has been substantial interest but no company has the capital to develop in current market conditions. Although talks continue with a number of companies about developments on this tremendous site there is little hope now that there can be continuity of employment.""There has been substantial interest but no company has the capital to develop in current market conditions. Although talks continue with a number of companies about developments on this tremendous site there is little hope now that there can be continuity of employment."
Mr Salmond added: "The workforce have been terrific in sticking with the plant over the 90-day period. There will now be the maximum help by the Government's Partnership Action for Continuing Employment (Pace) team in advice and re training, which will take place on site at Inverurie.Mr Salmond added: "The workforce have been terrific in sticking with the plant over the 90-day period. There will now be the maximum help by the Government's Partnership Action for Continuing Employment (Pace) team in advice and re training, which will take place on site at Inverurie.
"I will be meeting the mill shop stewards later today in Inverurie to take forward any issues arising from today's announcement."I will be meeting the mill shop stewards later today in Inverurie to take forward any issues arising from today's announcement.
"I know that a major priority for the workers and the town is to ensure that this site does not lie mothballed for long but it is put to productive use to generate jobs and investment. That will be the major and continuing aim of the Scottish Enterprise team.""I know that a major priority for the workers and the town is to ensure that this site does not lie mothballed for long but it is put to productive use to generate jobs and investment. That will be the major and continuing aim of the Scottish Enterprise team."
Papermaking was once one of the north east of Scotland's major industries.Papermaking was once one of the north east of Scotland's major industries.
However the announcement leaves the area with just one functioning mill, in Aberdeen.However the announcement leaves the area with just one functioning mill, in Aberdeen.