What will happen to Arjowigginsâeurosâ?? British paper mills? Unable to cope with the sharp increases in energy and raw material costs, the group's 10 UK subsidiaries have gone into insolvency proceedings and placed under judicial administration since September 22 .
The administrators appointed to take over the management of the group, the firm Interpath Advisory, have stopped paper production at the two British paper mills, the Scottish graphic and packaging paper mill at Stoneywood and the British tracing and innovative paper mill at Chartham. And 368 of the 463 employees have been made redundant.
Currently, Blair Nimmo and Alistair McAlinden, the two directors, indicate that they are exploring the interest of of "commercial and financial investors" who wish to take over the activities and assets of the Arjowiggins group.
The Stoneywood and Chartham sites benefit from a "maximum exposure" in order to attract the attention of buyers who would continue to manufacture paper.
" In the absence of any serious interest for the acquisition of either site as a manufacturing site, the co-administrators will continue to scale back operations at each plant." At present, the activity is limited to the cutting of large paper reels already produced.
Interested parties are asked to contact the directors " urgently, regardless of their interest for the company (or a portion thereof) and/or specific assets."
Arjowiggins owns two other plants, one in Spain and the other in China through its subsidiaries Guarro Casas and ArjoWiggins Quzhou. Neither of these companies is involved in this proceeding.
