Sales and marketing director Herve Allaire said Arjo was putting the initiative in place because it needed to reduce costs to meet imminent challenges in the market.

"Although this is in the pipeline we do not have plans to close any of our European sites. We are just trying to rationalise," he said.

A statement issued by the company cited the economic slowdown and a declining market resulting in negative financial results for 2001.

In the last month the group has been hit by a 115.1m European Commission fine for its part in a pan-European carbonless paper cartel (PrintWeek, 4 January).

Arjo Wiggins also sold its US carbonless manufacturing operation, Appleton Papers, in a 562m employee-sponsored buyout led by Appleton Papers chief executive Doug Buth (PrintWeek, 16 November 2001).

The companys carbonless operations had a turnover of 290m in 1999, with sales of over 300,000 tonnes and a 40% share of the European market.

Arjo Wiggins Carbonless Operations employs around 2,250 staff. It has four manufacturing sites in Belgium and the UK and 15 sales offices across Europe.

Story by Andy Scott