FRP identifies preferred bidder as deal looks set to save historic Aberdeen paper mill

The development marks a significant step forward in attempts to secure the future of the site and its workforce.

Nearly 500 workers was plunged into uncertainty in January when Stoneywood Mill, which has operated since 1770, was placed into administration and a takeover fell through.

Arjowiggins Fine Papers at Stoneywood was one of a number of UK businesses facing the measure from French parent company Sequana.

A small number of redundancies have since been made, with Stoneywood Mill reducing by seven positions to 482 staff, and operations in Basingstoke, Hampshire losing one role to 28, and Chartham in Kent shedding four positions at 86 staff.

Bosses at Arjowiggins Fine Papers met Scottish Government minister for Business, Fair Work and Skills, Jamie Hepburn, and Unite representatives, to discuss what steps could be taken to support the business and workers.

Earlier this month it emerged there were three potential bidders interested in one or more of the businesses and no administrators FRP Advisory say a preferred bidder has been selected and a proposed deal is for the sale of the assets of the business as a going concern and the retention of all staff.

A spokesman for the administrators FRP Advisory, said: “The joint administrators have selected a preferred bidder for Arjowiggins Fine Papers Limited operations at Stoneywood in Aberdeen and in Basingstoke, and Arjowiggins Chartham Limited in Chartham, Kent.

“The proposed deal is for the sale of the assets of the business as a going-concern, and the retention of all remaining staff, who currently number Stoneywood (482), Basingstoke (28) and Chartham (86).

“Subject to the satisfactory conclusion of due diligence, it is hoped that the deal will conclude around the middle of April.”

Tommy Campbell, from the Unite union, said: “This is very welcome news and another step in the right direction towards securing the long-term future for all the jobs at the paper mill.

“The workforce and their families will be glad to hear that a buyer has been agreed and we now await the final news in a few weeks’ time that all the jobs are safe and that the mill definitely has a long-term future.”

Pulp and paper investor Terje Haglund had previously expressed an interest in the Stoneywood and Chartham sites, and is also engaged in trying to put a deal together for Arjo’s French operations.

Meanwhile staff at the paper manufacturer’s French plants continue to await a decision on the sale of the business.
A has court delayed its decision once again.

The Commercial Court of Nanterre was originally set to rule on the offer by Swedish wood and paper group Lessebo.