The job cuts amount to 25% of the workforce of the independent Scottish papermaker. They follow reported losses of 269,000 for 2003, a reversal of a 1.28m profit in 2002.

The losses were the result of "tough trading conditions in key markets", according to the company, which hopes to return to profitability in the next 12 months.

Managing director Alban Denton was holding talks with GPMU officials at Dalmore to discuss possible scenarios. A spokesman for Curtis said it was keen to look at ways of avoiding or reducing redundancies.

One option will be to offer a number of relocation packages to the company's other mill at Guardbridge, St Andrews, which is some 60 miles away.

The spokesman said Curtis had started an internal review process six months ago to look at ways of restructuring its business.

It has the option to revert to a single site production unit because both mills are able to produce its eco and specialist papers.

The Dalmore mill has a capacity of 10,000 tonnes a year and, if Curtis reverts to single site production, Guardbridge would have a capacity of 30,000-40,000 tonnes a year.

Curtis was the subject of a multimillion-pound management buyout from Royal Blue Holdings just over two years ago (PrintWeek, 25 January 2002).

The buyout was led by former managing director Allan Milne and returned the mill to Scottish ownership for the first time in 20 years. Curtis produces more than 40,000 tonnes of special make, security and branded papers each year.

Story by Andy Scott