Huge blow for the European paper industry. While the the group's UK operations had been taken over just three years ago by members of the management, Arjowiggins is once again facing major financial difficulties. On September 22, the 10 British subsidiaries of the French-based group were placed in administration.
The two paper mills concerned by this procedure are the graphic and packaging paper mill in Stoneywood, Scotland, which has been in operation since 1770, and the tracing and innovative paper mill in Chartham, England, which dates back to 1738.
Stoneywood produces the famous Conqueror, Curious Collection and Keaykolour lines of papers. Chartham manufactures Gateway tracing paper, a world-renowned brand for hand and technical drawing.
Immediate dismissal of employees
368 of Arjowiggins' 463 employees were immediately laid off. The remaining 95 employees are responsible for the operation of the two sites on a limited basis.
"Unfortunately, the group has faced a challenging business environment since the negative impact of covid-19 on trade and cash flow, which means that the group has been loss-making. These losses have been compounded more recently by significant increases in energy and raw material costs, including pulp." explain in a press release the two receivers.
Management explored all possibilities to preserve the company, but "without a secure financial solution, have taken the difficult decision to place the group's UK companies into administration".
They add: "Arjowiggins has a long and proud history dating back over 260 years, so this is extremely disconcerting news for the British and Scottish industry."
Search for sales options for sites and assets
Over the next few days and weeks, the two administrators will explore options for selling the sites and assets. "We urge potential interested parties to contact us urgently."
Arjowiggins also owns two other plants, one in Spain and the other in China through its subsidiaries Guarro Casas and ArjoWiggins Quzhou. None of the operating companies are involved in insolvency proceedings.
At this time, no official information has been communicated on the continuity of the supply of papers produced by the English paper mills.
