40 redundancies at East Lancs mill

Around 40 staff at East Lancashire paper mill have been made redundant after it appointed administrators.

Around 40 staff at East Lancashire paper mill have been made redundant after it appointed administrators (PrintWeek, 19 January).


A number of the workers made redundant are believed to have worked in the finishing department. Several of them are long-serving members of staff.


It is understood that a number of the staff are represented by the Clerical, Managerial and Supervisory (CMS) union, which is currently in negotiations with the administrators and management.


Administrator Arthur Andersen is working with the management with "the objective of achieving its refinancing, or a sale as a going concern".


The 139-year-old company has experienced many highs and lows during its colourful history.


The mill, which employs about 250 staff, was at one time one of the Radcliffe area's largest employers.


In 1990 there was an MBO, which gained full control of the firm in a 10.3m deal in 1994.


In 1995 it received approval for a 3.5m water recycling and effluent treatment plant, and followed that in 1996 with the opening of a 17m Combined Heat and Power plant.


In 1997 the first signs of trouble appeared, with the company receiving a 12m injection. But 40 jobs were lost in the process.


Early last year, further rumours suggested all was not well, with around 50 jobs going as a result of the strength of sterling and high material costs.


Story by Andy Scott