The owners of a historic Aberdeen paper mill today confirmed they are intending to enter into administration.
Owners of Stoneywood Mill, Arjowiggins, filed for receivership earlier this month after the sale of the site collapsed.
Parent company Sequana, which is based in France, today confirmed its intent to appoint administrators at the request of Arjowiggins.
A safeguard procedure was placed on the mill, alongside other businesses.
Around 500 people are employed at the company, which is more than 300 years old and is the last remaining paper mill in the city.
Fears have been raised for their jobs as uncertainty over the company’s future continues.
A spokeswoman 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.”
Keep up to date with the latest news with The Evening Express newsletter
Last year, a deal was struck with Dutch company Fineska BV to sell off Sequana’s paper and packaging distribution business for £111,401,875.
But that sale fell through and the company was put back on the market just days after Christmas.
Unite regional officer Tommy Campbell has been in talks with the firm.
He said: “It’s very disappointing news but we will do everything we can to ensure that the business survives. The workforce have worked hard to make this a profitable business, and we want to make sure that continues.”
Aberdeen Donside MSP Mark McDonald, who represents the area, intends to raise the matter in Parliament to get necessary support for the firm.
He said: “It’s going to be a really worrying time for the workforce.
“We need to ensure that everyone is working to ensure the future of the business and I intend to raise this matter with the Scottish Government to ensure that they are taking every step necessary.
“We have seen them take action in other companies in Scotland to convene taskforces to bring together various organisations, both local and national trade unions in order to secure the future of other businesses.
“There should be a similar approach in relation to Stoneywood Mill.
“The collapse of the takeover deal is a massive disappointment and it is vital that every
effort is made to secure a buyer for the business, given its profitability.”