Bougniart, who described the restructuring as "back to the future", said the average price for carbonless in Europe had continually fallen since 1995, with demand also down by 30,000 tonnes a year.

"Its difficult for the manufacturers to recognise, but it is a reality. The carbonless market is declining at a rate of 5-6% per year and we have to react to this," he said.

The 300 jobs will go across Arjo Wiggins Carbonless UK and European operations. Its main product is Idem.

Bougniart said the Fort William manufacturing plant in Scotland would focus more on "new complementary carbonless products", such as Constat, Constat Laser and Sensa pre-print, and would gradually scale down carbonless paper production.

The news came a week after the division reported a 23.3m loss in 2001, compared to a 3.5m profit in 2000 (PrintWeek, 14 June).

The 300 jobs will mainly go at its Nivelles plant in Belgium, which will lose nearly 40% of its workforce, while 30 jobs will go at Fort William and some from Dartford and the firms Basingstoke headquarters.

The jobs affected will be in ancillary, personnel and support operations.

The Basingstoke office has already lost 60 jobs, leaving a staff of 40, and Bougniart said the firm would look to move the base nearer to a manufacturing site.

Arjo Wiggins has also made an application to the European Commission regarding the 115.1m fine for its part in a pan-European carbonless paper cartel (PrintWeek, 4 January).

But Bougniart expected the European Commission to take two to four years to publish the results of the appeal.

Story by Andy Scott