With a history of paper making that dates back to 1873, independent Scottish speciality paper producer Curtis Fine Papers is now looking ahead to the future and the continued development of its workforce and product ranges.

Managing director Keith Chapman (pictured), who took up his role six months ago, has already outlined his plan of action for the mill's ongoing development.

Chapman replaced Alban Denton, who stepped down from his role as managing director with the St Andrew's-based firm in February this year. Like Denton, Chapman is a recruit from outside the firm, but he has gained an insight into how it operates from his role as managing director at reel-to-reel printer and paper bag manufacturer Bibby & Baron.

Coming from outside of the business with a fresh perspective, Chapman says his new position has not been a million miles away from what he was doing before. "We have a team with a lot of experience in the paper industry, but there are advantages to not knowing everything," he says.

Coming to grips with the ins and outs of the industry has been a steep learning curve, but it has not stopped him making tough decisions, one of the first being to implement a price increase. Although this may not have proved popular, Chapman believes it was overdue and necessary.

The larger merchants were able to pass the increase on, and as Chapman explains, if nobody is making any money down the supply chain, it's not good for the industry.

No major business was lost and although the company has forecast it will lose around 1.1m this year, the aim is to get back into profit. The signs are positive the company has made a profit in October for the first time in 16 months.

"We are 100% owned by the directors with modest bank borrowing, and there's not many companies that can say that in the current climate," he adds.

Quality control
Chapman admits the closure and transfer of equipment and products from the firm's Dalmore mill in July last year has presented the firm with some quality issues, but adjustments are currently being made. "Our quality has not been as good as it could have been over the last six to nine months, and we are now looking to put that right."

The approach has been for management to set targets, but as Chapman outlines, the company now intends to transfer more responsibility to the shop floor.

A consultant has been brought in to help with this, and managers have been taken off site in order to become better coaches part of the firm's management programme.

Chapman says that Curtis also intends to ensure that all of its ISO procedures are adhered to do, and one way the firm is doing this is by synthesising the number of tasks staff have to do, thus making sure they concentrate on the fundamental areas of the business.

This has been helped by the award of over 60,000 from Scottish Enterprise Fife to jointly fund a series of business initiatives aimed at strengthening the firm's position as a major employer in the region.

Dynamic changes
The 18-month management programme, which encourages staff to focus on the changes ahead, will eventually include all managers and supervisors at the mill. "We operate in a dynamic and challenging market sector, and our success depends on embracing and implementing change."

Some changes will be based simply on style, but he hopes even these will prove to be innovative. One plan is to launch at least 10 products every year.

A decline in the graphical market led to the painful decision to close the firm's Dalmore mill last year, a decision taken before Chapman's tenure. Yet he admits that consolidation is not viewed as Curtis' route to salvation. "We need to make ourselves as competitive as we can be. There are enough niches in the market for Curtis to survive," he says.

"Our job is to give people hope for the future and not to encourage complacency, as this is not a huge margin business," he adds. The firm needs to drive efficiency and, according to Chapman, its long-term position is secured by being in the right niche sectors.

A further part of Curtis' development plans will be the appointment of a full-time buyer, who will be responsible for the purchase of the energy and pulp. "I think we can look forward to a good future and we are starting to tell the workforce about that," he says.

With Chapman at the helm and development plans in place, it seems that Curtis can toast a healthy future.

Curtis Factfile
- 1873 Guardbridge Mill founded on site of a former whisky distillery

- 1980s Firm becomes part of US-based James River Fine Papers

- 2002 Management buyout brings Curtis back into Scottish ownership

- 2005 Projected turnover of 32m

- Staff 340

- Produces 30,000 tonnes each year of speciality grades

- Certification Forest Stewardship Council (FSC)