But parts of Spain were offering 40% EU capital grants to entice companies into high areas of employment, he added, and a papermaking and converting plant could be built alongside one of Spains pulp mills.
Leicester-based LPC bought Kilbagie mill from Scottish papermaker Inveresk in a 1.8m deal in March last year (PrintWeek, 8 March 2002).
Through its investors, LPC has already allocated 15m towards the development, which would turn the plant into a state-of-the-art papermaking facility.
But it is still waiting for funding from the Scottish Development Agency (SDA), which is part of the quango Scottish Enterprise.
A spokeswoman for the Scottish Executive said: We remain extremely keen to ensure that this project is secured for Scotland, and we continue to work with the company to achieve this. A significant offer of financial assistance had already been made to the company, she said, but the Scottish Executive had to operate with agreed financial limits.
GPMU Scottish assistant branch secretary Archie Mitchell said the union would continue to talk to all parties in the hope that a successful conclusion could be found.
Kilbagie employs around 40 staff and has annual sales of 8m.
Changes at Kilbagie
March 2002: LPC Group buys Kilbagie mill from Inveresk in 1.8m deal
August 2003: LPC Group gains pledges of 15m from investors for 22m development plan to create 150-200 new jobs at the mill
August 2003: LPC Group threatens to move production to northern Spain if Scottish Development Agencywithholds 7m grant
Story by Andy Scott
