The long-established company makes high-quality paper as well as advanced non-woven materials. Alongside graphic arts its customer base spans the packaging and medical industries.

Steve Adams, managing director of James Cropper Paper, said: “By adhering closely to government guidelines, the Kendal mill is operating with a number of new measures in place to protect the safety of our staff and the local community.”

The firm said that some parts of production will run at a reduced capacity, in line with demand.

Adams added: “We’d like to thank our staff for their support and take this opportunity to reassure our loyal customers, who are also navigating their way through this difficult time, that we’re still operating and here to support them.”

James Cropper employs 600 staff, with those able to work from home doing so.

In a trading update the firm said it had not as yet experienced a downturn in demand as a result of Covid-19, and expected to meet market expectations for its financial performance in the year ending 28 March.

However, it anticipates that demand for packaging materials will reduce overall despite a likely increase in demand for packaging used by e-commerce businesses. 

Its Technical Fibre Products (TFP) division is experiencing some logistical challenges due to the reduction in global airfreight capacity.

The £101m turnover group said it would not pay its final dividend in order to preserve its cash position, in the face of uncertainty about how the virus situation would develop.