IP, which closed the site in March 2009 with the loss of 371 jobs, said draft business plans are expected in the next four months.

Eric Chartrain, IP's vice president of manufacturing and technology, EMEA, said good progress was being made on reindustrialisation options.

Negotiations are in progress that could lead to the operation of a green energy plant that will be used to power an energy efficiency data centre.

"Both of these projects would provide local employment and an industrial presence into the future of Inverurie," said Chartrain.

"While it is still quite early in the process, we are confident that we can bring the negotiations to a successful conclusion given the strategic importance of the site."

An IP spokesman said 50 of IP's original staff are still employed at the mill, but there will be no direct transfer if the project goes ahead.

"A lot of the assets of a green energy plant are already at the mill, so we are confident there will be a positive outcome where we can look to recruit staff locally."

Following IP's decision to close the Inverurie mill, Unite claimed the paper giant had always planned to move production abroad, despite a three-month consultation process with staff and interest from Norwegian pellet-maker Biowood Norway.

The mill's closure removed 250,000 tonnes of uncoated freesheet capacity from the group's European output and saw the departure of IP from the UK paper manufacturing sector.

IP is a global paper and packaging company that manufactures uncoated paper, office paper, and industrial and consumer packaging.