Sunderland Paper discusses closure

The Edward Thompson Group is in consultation with employees over the closure of its Sunderland Paper mill, which could lead to 95 job losses.

Chief executive Phil Cronin said the paper division's gas and electricity costs had soared by 160% over the past two years, creating an annual energy bill of 2.5m, against paper sales of 10m.

"We have been unable to pass this cost on to customers and our sales have suffered," said Cronin.

A five-week consultation period has begun, the outcome of which will be known by the end of  November.

Cronin said the games and print divisions of the company were trading well, and the decision to cease paper production had been made to support the long-term future of the group.

The mill specialises in the production of recycled paper and bespoke mailing products, producing 23,000 tonnes per year.