Inveresk is cutting 150 jobs, or 18% of its workforce, as part of a major cost-reduction programme.

Executive chairman Ken Minton said negotiations were taking place with the workforce at the firms Westfield mill. He is also looking at similar programmes for the companys other mills.

Minton said he had approached the business in a different way to his time at Arjo Wiggins, focusing on restoring customers confidence in the product, attacking raw material costs and improving productivity.

I believe Inveresk has a good future, providing it can remain competitive, said Minton, who felt that mill productivity had not been good enough in the past.

Inveresks turnover for the first six months of the year fell 7% to 54.2m, reflecting the weaker trading climate.

Pre-tax losses also rose 6% to 3.4m, while net debt at the end of the period stood at 23m, up 27% on last year.

Debt refinancing produced an exceptional cost of 920,000, while the group was also hit by another 520,000 of costs after restructuring in May and June.

Minton said one of his primary objectives was to achieve sustainable growth and reduce the level of debt. Progress was being made in these areas, he said, including improvements in productivity.

Minton said he had no problem with Klippan Paper chairman Jan Bernander owning 20% of Inveresk, but added that he would have a problem with him sitting on Inveresks board, given his position with Klippan.

Story by Andy Scott