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EXCLUSIVE: Bid to save Aberdeen’s Stoneywood paper mill rejected

Stoneywood Mill in Aberdeen. Image: Paul Glendell
Stoneywood Mill in Aberdeen. Image: Paul Glendell

A plan to save the historic Stoneywood paper mill in Aberdeen was dismissed by the firm appointed to secure a viable future for the site, we can reveal.

An offer to take over the mill is understood to have been made by Glasgow-based Bell & Bain, one of the UK’s largest and oldest independent book printers and binders.

But it is understood that the firm’s proposal was rejected by administrators Interpath Advisory.

And one source close to the discussions told us: “There doesn’t seem to be an appetite to save the mill”.

However, another insider insisted that no “credible” offers have yet been made to keep open the mill, which dates back to 1770.

Stoneywood Mill in 2019. Image: Kath Flannery / DC Thomson

More than 300 workers lost their jobs after the mill was put into administration in September.

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

Last month, the administrators urged any interested parties to contact them as a “matter of urgency”.

North East Conservative MSP Douglas Lumsden, who was notified of potential interest in the site, said it was “extremely disappointing” the right bid had not materialised.

‘Bitter pill to swallow’

“This is a bitter pill to swallow for the workers who still had some hope of the mill being saved,” he said.

“It’s clear the Scottish Government hasn’t done enough to support interested parties in taking over the site in its present form and has short-changed Aberdeen once again.

“Public money was made available for the likes of Michelin, BiFab and Ferguson Marine but when it comes to saving jobs in the north-east the door is slammed shut by this SNP government.

“My thoughts again go to the hardworking staff who have lost their jobs and been treated horrendously through the unfortunate chain of events which have unfolded.”

It is understood there have been no offers put forward for the mill which were “considered credible in terms of their value or the basis of the transaction”.

Douglas Lumsden MSP. Image: Kenny Elrick / DC Thomson

However, the administrators are believed to remain open to discussions with any interested party who is in a position to put forward a credible offer.

Government business support agency Scottish Enterprise had been working 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.

A Scottish Government spokesman said: “This is a very difficult time for Arjowiggins’ staff, their family and the local area and the Scottish Government is doing everything in its power to help those affected.

“Scottish Enterprise worked extensively with Arjowiggins and its partners to explore all possible options to support the business and its staff and the joint administrators are committed to working with potential buyers.

“Employees have already received support through the Scottish Government’s initiative for responding to redundancy situations – Partnership Action for Continuing Employment (PACE) and a jobs fair was also held for staff.

“Business Minister Ivan McKee has spoken with the administrators and Unite the Union to reiterate that the Scottish Government and Scottish Enterprise will provide ongoing support.”

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