Owners of a troubled Aberdeen paper mill have signalled their intent to “survive and be successful” as they push on with plans to modernise the facility.
Arjowiggins Scotland has lodged plans for a new energy centre at Stoneywood to replace ageing facilities left behind by modern standards.
The firm’s architects, Mackie Ramsay Taylor, described the “essential” power generation facility as “crucial to its ongoing viability”.
It was only two years ago that the city’s last remaining paper mill escaped administration, safeguarding around 450 jobs at the time.
However, the business made redundancies to cope with the turmoil of the pandemic – with around 70 jobs cut.
Bosses have reiterated the pandemic has been “very, very difficult” but said they were optimistic of “managing their way through”.
New power plant has been on the to-do list for years
Plans to replace the 25-year-old combined heat and power (CHP) plant, on a small manmade island in the grounds have been in the pipeline for years – but fell to the wayside as bosses navigated their way through trouble after trouble.
Their proposals – informed by a £125,000 environmental study – also include a replacement bridge to the island to allow articulated lorries access as the current crossing has developed “several severe defects” and is no longer strong enough to support their weight.
A third chimney on the site, 30ft shorter than the two 145ft stacks, is part of the plans too.
General manager at Stoneywood paper mill, Angus MacSween, said: “It’s no secret the mill has an ageing CHP plant, it’s time to be replaced.
“This is a very positive statement that we are taking it as far submitting plans, showing we intend to survive and be successful.
“But this is something we have been working on for a number of years and it was delayed when we went into administration and then by the buyout and then by Covid.
“But we are moving forward now and the planning application is a positive move – though the caveat is we are still to secure funding so it is not a done deal by any means.
“But we absolutely think we will or we wouldn’t have committed to the full study to get to this point.”
He added it would be “all systems go” when capital investment and necessary planning permissions were secured, with the construction expected to take two years.
Continued government support for the troubled Stoneywood Mill
So far, Scottish Enterprise has committed £10.5 million to keep the mill afloat – including £7m as part of the government and private sector management buyout in 2019 that kept the business going.
Only months before lay offs were announced last November another £3.5m was approved by the business quango.
And mill bosses are still in talks with officials, both at Scottish Enterprise and the environmental agency, Sepa.
A Scottish Enterprise spokeswoman said: “Scottish Enterprise sustainability specialists have worked with Arjowiggins in Aberdeen over a number of years to provide advice on energy savings as we do with many companies across Scotland to support the reduction of carbon emissions across a range of industries.
“An environmental aid grant of £125,000 has supported the pre-development phase for the CHP project and is part of an ongoing programme of sustainability Arjowiggins is undertaking to minimise the energy consumption and emissions of its mills.”
Meanwhile, a Sepa representative told us managing energy needs was “central to living within the resources of our planet”.
She added: “A successful Scotland will have a sustainable, efficient energy system that can keep our businesses running while promoting sustainable growth and not jeopardising climate and environmental ambitions.
“Since 2019, Sepa has been in discussions with Arjowiggins Scotland Limited and Scottish Enterprise on a replacement CHP plant at the Stoneywood paper mill in Aberdeen.
“Sepa has been providing advice and guidance so the new system is more efficient and in line with the Scottish Government’s plan for net zero emissions by 2045.”
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