Rigid Paper shuts down Selby mill at a cost of 86 jobs

All 86 staff at Rigid Paper's Selby papermill are to be made redundant, as the company announces it has stopped production at the site.

The North Yorkshire-based company, which is a subsidiary of VPK Packaging Group, shut down its last paper machine 8 January.

Mill manager Phil Woolley said the first redundancies will take effect as of 11 January, with a run down over the coming months.

Rigid Paper announced it had entered into a consultation period over plans to close or suspend manufacturing in September last year.

At the time, the company cited “difficult trading conditions” that faced the business, and the “unprecedented volatility” in the energy markets experienced by the business throughout 2008.

Woolley said: “During this period, average prices have increased by around 145% as compared to the same period in 2007.

“Despite significant capital investments, the operation has continued to become progressively less economic.”

Rigid Paper manufactures paper for packaging. In its 2007 financial year, it output 70,000 tonnes with a turnover of £5.4m.

It is part of the Rigid Group and a subsidiary of VPK Packaging Group. VPK Packaging Group is a Belgian packaging group with 26 companies in 12 European countries.