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Stoneywood mill sale is ‘focus’ for government after calls for public ownership

Stoneywood paper mill. Image: Kenny Elrick/DC Thomson.
Stoneywood paper mill. Image: Kenny Elrick/DC Thomson.

Administrators for Stoneywood paper mill should focus on selling the site to a new buyer, says the Scottish Government.

More than 300 workers lost their jobs after the mill was put into administration less than a fortnight ago, with some reduced to tears on hearing the news.

It has prompted calls for the Scottish Government to consider taking the site into public ownership in a bid to save jobs.

Asked if that was a possibility, a government spokesman said the focus should “remain on the administrators conducting a further sales process”.

He added that government jobs agency Scottish Enterprise is “working with them to explore all possibilites to rescue the jobs”.

Public ownership

The Ferguson Marine shipyard in Port Glasgow was nationalised by the Scottish Government in 2019. 

But the SNP has faced widespread criticism as a result of the ferries crisis, with the scandal escalating in recent months. 

Speaking last week, First Minister Nicola Sturgeon said it is “deeply regrettable” a buyer for the mill could not be found. 

But the SNP leader added her government has been “regularly criticised” by the Tories where it has taken action, such as in the case of Ferguson Marine.

Scottish Enterprise has worked with the mill owners Arjowiggins since 2019, when it came close to administration, to try to find a buyer for the company.

The Scottish Government provided more than £12 million to the business in an attempt to turn its fortunes around.

Interpath Advisory, who were appointed administrators for the site, said “severe challenges posed by the pandemic”, along with “skyrocketing energy costs” had been overwhelming for the firm.

Stoneywood paper mill has been closed with immediate effect resulting in the loss of more than 300 jobs. Image: Paul Glendell/DC Thomson.

A Scottish Government spokesman said: “Scottish Enterprise worked extensively with Arjowiggins and its partners to explore all possible options to support the business and its staff.

“The focus should remain on the administrators conducting a further sales process and Scottish Enterprise is working with them to explore all possibilities to rescue the jobs.”

Employees are getting support through the government’s Partnership Action for Continuing Employment initiative, known as Pace.

Events took place on September 29 and a jobs fair is being arranged for October 10.

“Business Minister Ivan McKee has spoken with the administrators and Unite the Union to reiterate our ongoing support through our PACE initiative and Scottish Enterprise,” the government spokesman added.

The administrators were approached for comment.


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