PSM makes recycled papers for the UK market, including the Era Pure range distributed by Robert Horne under the Revive 100 Offset brand and PaperCo under the 9lives Offset brand.

PSM is the only company to produce Take 2 Offset Laser, 9lives Offset, Revive 100 Uncoated, Revive 50 Uncoated and Oxygen 50 :50.

Of the 120,000 tonnes it produced annually, 45,000 tonnes are recycled paper. The company also supplies papers through Elliott Baxter and the James McNaughton Group.

Production was temporarily halted at the 200-staff mill after administrators were appointed by the French Court of Commerce, although further details were not available at the time of writing.

PSM is now in a six-month ‘trial period’ while it looks for a buyer. None of the mill’s 200 staff have been made redundant.

Commercial director Alexandre Riesser said: "PSM's move into administration was expected. It is necessary to change the very complicated ownership situation of the mill and it does open up new horizons.

"The situation can be solved, as it's a cash problem, which is partly solved thanks to the freezing of debts."

PSM’s administration comes at a time when the UK paper supply has been dealt a blow by significant cost increases and the negative impact of the UK exchange rate to the euro. This has resulted in price increases that are currently being confirmed by mills for September.

Robert Horne managing director Alistair Gough said many mills are in an unsustainable position and "the supply and demand balance in the [recycled] sector will certainly be slightly tighter for a time".

"However, while the PSM situation may reduce overall supply there are other manufacturers investing in the supply of recycled grades," he added.

James McNaughton group marketing director Tony Porter said the news was "indicative of the difficulties facing papermakers".

However, Porter said that there are alternative sources of supply that will satisfy the UK market.

The PSM mill began production in 1932 and in 2000 it was bought by Metsä-Serla.

In 2001, it changed its name to M-real PSM and in 2006, M-real sold the mill to German company Arques Industries for an undisclosed sum (PrintWeek, 6 July 2006).