The UK operations of pulp and fine paper business Arjowiggins have been placed in administration, with rising pulp and energy costs cited as the reason. The trading companies affected include Arjowiggins Fine Papers and Arjowiggins Chartham.
The former operates the Stoneywood Mill in Aberdeenshire and a distribution depot in Basingstoke, for which Iain Fraser, Tom MacLennan and Geoff Rowley, partners at specialist advisory firm FRP Advisory, have been appointed as joint administrators.
Arjowiggins Chartham operates the Chartham Mill in Kent. FRP Advisory’s Phil Reynolds joins Mr Rowley and Mr MacLennan as a joint administrator.
The UK companies are part of the Creative Papers division within Sequana, a listed French manufacturer and distributor of paper, packaging and print solutions. The administrations of the UK businesses follow a petition on 8 January by Sequana to begin receivership proceedings for several of Arjowiggins’ French subsidiaries. There are no immediate plans for redundancies in any of the UK businesses but the position will continue to be assessed.
‘Rising pulp prices and energy costs have made trading conditions extremely difficult,’ Mr Rowley commented. ‘In this market and the insolvency proceedings begun in France left the directors no option but to place the UK businesses of Arjowiggins in administration. We will continue to trade the businesses whilst seeking buyers and would urge interested parties to make contact as soon as possible.’
The Arjowiggins UK companies that have entered administration are:
Arjowiggins Fine Papers Limited, Aberdeen and Basingstoke
Aberdeen (Stoneywood): 489 staff
Basingstoke: 29 staff
Argowiggins Chartham Limited, Chartham, Kent
90 staff
Performance Papers Limited, Manchester
11 staff
Arjobex Limited, Clacton on Sea, Essex
48 staff
The Wiggins Teape Group Limited, Manchester
7 staff
