An MBO at Smurfits Burnley board mill by the chief executive of Smurfit UKs industrial packaging division, Mark Slevin, has saved the site from probable closure and preserved 220 jobs.
The operation is now called Papermarc.
Slevins personal assistant Valerie OReilly said "Smurfit was not prepared to invest in the plant, as they are investing in other areas of the organisation, and Mark wanted to save it." An unnamed venture capital group backed the 24 June purchase, which is the first-ever management buyout at Smurfit.
The mill produces more than 120,000 tonnes of packaging board and paper each year, of both recycled and virgin grades. A converting plant situated about a mile from the main site provides laminating, sheeting and slitting.
Slevin, who has nearly 20 years experience in European paper packaging, plans to run the mill "along current lines" and anticipates "no significant change in the range of products or production capacity". No job losses are envisaged, in fact, OReilly said more staff would probably be needed to exploit the "extensive investment" earmarked for the converting arm.
Slevin has been based at the Burnley mill for about three years.
Story by Tania Mason