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

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

"ArjoWiggins made it clear it intends to close the mill at the end of September. The workforce have been informed, but no redundancy notices have been served," said Stephen.

A spokeswoman for the Scottish Executive said that ArjoWiggins had informed staff in August of its intention to close the facility at the end of the 90-day period.

"The Executive and its agencies are currently working to support the staff affected and to help find a use for the facility," said the spokeswoman.

Fort William was the firm's hub of carbonless paper production, but in recent years had diversified 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.

A task force will now meet to discuss possibilities for the site and the surrounding area.

ArjoWiggins was unavailable for comment.

Story by Andy Scott