The taskforce will be co-chaired by deputy first minister John Swinney and leader of Fife Council David Ross and will bring together key organisations to support economic growth and employment across the area, and work with administrator KPMG to try and secure an alternative owner for the business.

Meanwhile group chief executive officer Chris Parr has revealed that 72 businesses had considered and rejected buying the company between October 2014 and last month.

“This has unfortunately only confirmed that the business is no longer viable,” he said.

The taskforce will also look for ways to help mitigate the effects of job losses by putting in place appropriate support for workers to help them back into new jobs and training.

Scottish first minister Nicola Sturgeon said the decision, made within hours of the appointment of Blair Nimmo and Tony Friar of KPMG as joint administrators at the request of the company’s directors, yesterday, was in response to the potential impact of the news.

“I am very concerned to learn of the job losses at Tullis Russell in Markinch. This will be a deeply anxious time for the workers, their families and the local community,” she said.

Ross said he and colleagues were “really saddened” by the news.

“This is a devastating blow, not only for the workforce and their families but also the communities of Markinch, Glenrothes and Mid Fife.

“Tullis Russell has been a great company with a history stretching back over 200 years. The massive paper mill at Markinch has been a feature of the local landscape and economy for generations and a pioneer of employee ownership.

Unite regional representative Dougie Maguire is due to meet Swinney on Thursday. The union represented 75% of workers in the plant, one of the biggest employers in Markinch.

Maguire told PrintWeek he wanted to work with the taskforce to find a way to protect the remaining 149 Tullis Russell employees and identify other work for those laid off yesterday.

“It was one of the biggest employers in Markinch. People were sacked yesterday over the phone. People who had been on the night shift on Sunday or on holiday.

“What’s even sadder is that a large number of employees have spent their working life in Tullis Russell. They’ve got really good skills and I’m not sure there are enough places for them to use those skills in Markinch.”

Maguire said yesterday’s announcement came as “an absolute shock” with the union being aware the company was in financial difficulty but had received no indication that it was in crisis.

He said he had a meeting with the company within the past three weeks to discuss the implementation of the second part of a two-year pay deal, which had been positive.

“They explained that there was ongoing financial difficulties, manufacturing is in a terrible position. We reached a resolution here they would implement a pay deal in September and we left relatively happy. There was no indication at that time that this [the administration] would happen.”

Maguire added that the shock felt by the workforce was exacerbated by the fact that Tullis Russell is an employee-owned company with employees and Unite members on the board.

Parr said the decision by directors to call in the administrators was a result of demand for the company’s products dropping by 40% since 2008, wood pulp trading at higher prices than ever before and unfavorable exchange rates.

The company has been able to generate new business within luxury packaging and certain digital applications over this time, however annual volume is currently 14% lower than 2008 levels and the profit margin achieved is substantially weaker.

He said the company’s position finally became untenable when Paperlinx went into administration on April 1 and Tullis Russell directors were faced with no choice but to follow suit.

Tullis Russell Group’s two other operating subsidiaries, Tullis Russell Security & Speciality Coating based in Bollington Cheshire and Tullis Russell Image Transfer based in Ansan, South Korea, are totally unaffected by this move and continue to trade normally under the Tullis Russell Group.

Tullis Russell Papermakers Limited was founded in 1809 and since that date has operated from a 40-hectare site in Markinch, Scotland. The company manufactures high quality board for use in the cards, covers and premium packaging sectors. Its product range includes Trucard, Naturalis, Advocate and Mellotex.