Arjo announced in June that it was undertaking a review of the mill, which it said could lead to a closure in November. The firm then began a 90-day consultation period with employees and union representatives.

Scottish enterprise minister Nicol Stephen MSP confirmed the mill's demise on Monday (29 August), in response to a parliamentary question from Labour MSP Maureen MacMillan.

The Fort William mill had been the firm's hub of carbonless paper production, but in recent years it unsuccessfully diversified its production into uncoated woodfree papers.

Local MP and Liberal Democrat leader Charles Kennedy MP said it was "a very sad day for Lochaber and all employees at the mill".

"It appears that the minds of the owners of ArjoWiggins were long since made up," he added.

Kennedy had campaigned heavily for the mill to be saved, meeting with Department of Trade and Industry officials in an attempt to secure a lifeline.

Kennedy said that people locally were bound to feel badly let down by the news.

In the next few weeks he said a task force will meet to discuss possibilities for the site and the surrounding area. "It is essential that we all pull together for the task now in hand," he said.

ArjoWiggins was unavailable for comment.

Story by Andy Scott