ArjoWiggins announced it had entered a 90-day consultation period with employees and representatives last week, putting at risk 150 jobs at the mill (PrintWeek, 16 June).

Deputy first minister and enterprise minister Jim Wallace was due to meet with ArjoWiggins officials at Fort William on 21 June.

Concern was expressed in the Scottish Parliament on 16 June at the closure of another paper mill, so soon after the announcement of Inveresk's plans to close its Carrongrove site, with the loss of 150 jobs.

ArjoWiggins printing and operations director Christian Sciera said that despite attempts by the firm to diversify production at Fort William to producing uncoated woodfree papers, this had proved to be uncompetitive.

Sciera said that despite the carbonless sector being a declining one for the firm, it would not pull out of the sector altogether. "It's still part of our core business," he said.

Inverness East, Nairn and Lochaber Member of the Scottish Parliament Fergus Ewing said the deputy first minister needed to ensure that every option was covered, including diversification or finding a new purchaser.

Officials from the Scottish Development Agency are to fly out to Paris and meet with senior management to discuss the review, which could lead to a closure of Fort William by the end of the year.

A spokeswoman for the Scottish Executive said the body was doing as much as it could to maintain dialogue. "We need to find out what we can do to maintain and protect the jobs at Fort William," she said.

Story by Andy Scott