The news follows a visit to the site by Nora Radcliffe, Scottish Member of Parliament for Gordon, and Gordon MP Malcolm Bruce, who met with representatives of IP and Scottish Enterprise Grampian (SEG).

"The pulp mill project was just one of the subjects discussed, as were the recent proposals for streamlining the business," said Radcliffe.

Radcliffe, who is also a resident of Inverurie, said the mill "had a good case for the project", and that it "made sense" to build the pulp mill next to an existing paper mill.

During the meeting management at the mill also outlined the problems facing it and the paper industry in general.

"It is such a competitive industry that they are getting a double whammy from exchange rates and cheaper foreign imports," said Radcliffe.

Representatives from SEG will now champion the case for Inverurie as they seek to gain funding.

Two weeks ago IP announced proposals for up to 80 job cuts at the site in a bid to maintain its long-term competitiveness (PrintWeek, 1 March). Negotiations continue with the GPMU.

Story by Andy Scott