The Donside Paper Company has made 113 staff redundant following negotiations between receivers and trade unions (PrintWeek, 15 December).


Hourly paid staff were the first to go, and monthly paid staff went on 31 December.


Those made redundant will receive statutory minimum redundancy payments.


"The order intake for production has been unusually high," said Iain Bennet, joint receiver and partner at PricewaterhouseCoopers.


"We now have an assured level of production that will keep the mill busy through till March. This will provide the time to find the right buyer at the right price."


Bennet confirmed that a cash bid had been received within hours of the receivership being announced.


"We are still actively pursuing other buyers," he said, and 22 companies are believed to be interested.


The receivers are also concentrating on the more profitable areas of sales.


"Europe has not been generating a good return, whereas the US has," said Bennet. "We will look at being more selective about the customers we sell to."


Donside is the largest employer in the Woodside area of Aberdeen.


Stefan Kay, managing director of fellow Scottish papermaker Inveresk, blamed Donside's plight on material suppliers and the Government.


"It's another bullet in the heart of our industry, and a clear case that costs are overwhelming the producers and we aren't getting it back," said Kay.


"It's not a case of an inefficient mill, it's the pulp price and the euro. We have to start getting a sensible price for our product or there won't be a top end of our industry left."


Story by Andy Scott