The likelihood of a public ownership bid for the struggling Stoneywood Mill could become clearer in a fortnight.
More than 300 people lost their jobs at the Aberdeen plant in September as the owners went into administration.
It is the second time the Arjowiggins-owned mill has faced financial straits in the last three years.
Whether Aberdeen City Council will have a part to play in a public ownership bid will become clearer in early November.
Stoneywood Mill in administration for second time since 2019
Since a management-led buyout in 2019, the firm has been propped up with £12 million in government-backed loans.
Another £225,000 has been given to bosses, some of which was spent working on plans to upgrade the decades-old combined heat and power plant onsite.
This work was never completed.
While business quango Scottish Enterprise is “exploring all possibilities to rescue jobs,” government ministers have faced calls to nationalise the mill.
Similar steps were taken in Port Glasgow at the Ferguson Marine shipyard in 2019.
But a government spokesman urged administrators to focus on selling the site, when pressed by The P&J.
Interpath has warned operations will be wound down if a buyer is not found soon.
Aberdeen City Council to investigate public ownership of Stoneywood Mill
Locally, Aberdeen Labour is urging council officials to look at what the city can do to keep Stoneywood Mill going.
Public ownership is among the routes councillors have asked top brass look at.
Labour were poised to debate the mill’s future last week.
But it was delayed to allow officials more time to assess the “fluid and changing” situation at the 250-year-old plant.
While bringing forward the two-week wait, council co-leader Alex Nicoll said Stoneywood is “an issue very close to our hearts”.
Chief city growth officer Richard Sweetnam has been asked to bring forward an urgent report.
Outlining options available to the council, he has specifically been asked to look into the practicalities of taking Stoneywood Mill into public ownership.
Lord Provost David Cameron said the mill had faced a “perfect storm”.
He outlined the work government agencies Pace and Scottish Enterprise were undertaking to help workers made redundant.
Aberdeen Labour leader: ‘Robust debate’ needed on future of Stoneywood Mill
Job fairs have already been held to help link them with new employers.
Meanwhile, workers have met with lawyers to discuss potential legal action.
Given only 90 minutes’ notice, they have hit out at a lack of consultation ahead of losing their jobs.
Much of the financial detail is expected to be explained behind closed doors at a council meeting on November 2.
Labour’s Sandra Macdonald said: “There would be huge questions around some of this.
“How and why and when some of this has happened and how the staff have been treated.
“While these Pace events have been going on, there are stories about how it has been very difficult for redundant workers.
“Let’s come back and have a robust discussion, look at the data, and debate how we take this forward as a council.
“Because I think there are things we want to do, want to say, and the sooner the better.”
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