More Jobs Go At Paper Mill
20 May 2015, 17:34
More jobs are to go at a paper-making firm after administrators confirmed they have received no offers for the business.
A total of 325 employees were made redundant when Tullis Russell Papermakers, based at Markinch in Fife, collapsed last month.
Joint administrators Blair Nimmo and Tony Friar of KPMG said around 200 parties had been approached but no offer for the business had been made by Monday's deadline.
A further 21 employees have now been made redundant while operations are being wound down, leaving the firm with 128 staff.
Mr Nimmo, head of restructuring at KPMG in Scotland, said: "The level of interest shown in the business and the outcome from Monday's closing date is disappointing.
"The business continues to face considerable economic challenges as a result of weakening global demand for printed materials, rising raw material costs and the strengthening of Sterling against the euro.
"We will now be working with the company's remaining employees to continue to wind down operations and focus on realising the company's assets.
"Unfortunately that will mean further redundancies but we will continue to work with Government agencies to offer support to those affected."
The Scottish Government and Fife Council have set up a taskforce backed by £6 million and headed by Deputy First Minister John Swinney and Fife Council leader David Ross.
In a statement, they said: "Securing new ownership of the Tullis Russell site was recognised as a major challenge, and despite our best efforts it has not been possible.
"We will continue to work with KPMG and Government agencies to establish further opportunities for the site.
"While we are disappointed to learn of a further 21 redundancies, we will act to help mitigate the effects of continued job losses and put in place support for every individual affected by the plant closure.
"The joint taskforce is committed to doing all it can to support everyone during this challenging time."
The taskforce has already agreed to provide £600,000 towards training for former employees.