Iggesund Paperboard is making 50 staff redundant at its Workington paperboard mill due to its "unsatisfactory profitability".
Iggesund Paperboard president Bjrn Kvick said the measures had been taken as "part of a drive to improve efficiencies and increase production".
Kvick said the cuts would not affect production staff, but would mainly affect "white collar workers on the technical and planning side".
"We are increasing the speed of how we handle the business as part of a package to improve efficiencies," Kvick said.
The mill has 525 employees. Iggesund Paperboard recently completed a 51m investment that involved the introduction of its new folding boxboard, Incada, which is the only product made by the group at Workington (PrintWeek, 19 October).
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"Well done all involved... great to see the investment to increase the productivity in the same footprint- much more sustainable than popping another one up."
"From 1949 until the late 2000s Remploy had a network of government-subsidised factories that offered employment specifically to disabled people, originally often war veterans or victims of industrial..."
"Does appear an odd decision as with that level of shareholder funds they would be liable for the staff redundancy and cover the insolvency costs. It’s not like they could take the money and dodge..."
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