M-real Confirms Sittingbourne Paper Mill Closure

Following the consultation process undertaken with employees and Amicus since October 23, M-real has now confirmed that the Sittingbourne Mill will cease production by January 31 2007.

Following the consultation process undertaken with employees and Amicus since October 23, M-real has now confirmed that the Sittingbourne Mill will cease production by January 31 2007.

The company also confirmed that it had not received any expressions of interest from any source in acquiring the mill as a going concern.

The union has also confirmed it has no further questions or issues to raise with the company on the specific proposal to close the Sittingbourne Mill.

Employment for the majority of operational staff will end on January 31 2007, beyond which there will be a requirement for some operations, technical, managerial and support staff to remain in employment.

They will undertake a controlled and managed clean up of the mill, which the company envisages will take up to two months.

No decisions have yet been taken regarding the future of the site, added the company.

Agreement has been reached with Amicus, the trade union representing the majority of staff at the mill, regarding agreed redundancy payments and an outplacement programme to advise employees on their future direction, said M-real.

M-real said that the main factors affecting its decision to close the mill have been felt across the European paper manufacturing industry and include rising energy and raw materials costs, coupled with falling demand and resistance to higher prices.

Nick Carter, Mill Manager of the Sittingbourne Mill in Kent (UK), said: "The company regrets that there is no alternative but to proceed with closure of the mill.

In the meantime, I would to like to thank all our staff for their continued efforts in supporting the business during this difficult period." Products made at Sittingbourne include Nimrod, Crossbow, Era Silk and Era Print.

Some stocks of standard products will continue to be available after the closure date, beyond which customers are being advised on any available options for sourcing equivalent products from other M-real mills.

M-real Corporation acquired the Sittingbourne Mill in 1999, following several changes in its ownership, including Bowater and UK Paper.

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