Hundreds of workers who lost their jobs with the closure of the Inverurie Paper Mill could be thrown a lifeline
Bosses at International Paper are said to be in talks to convert the site into a green energy plant.
The mill stopped production at the end of March with the loss of 321 positions. The company said no financially viable alternative was found.
It retained some 50 staff while the factory wound down production and began to dismantle and mothball some of machinery at the site.
But the company revealed that the mill was locked in negotiations with a consortium keen to reindustrialise the factory.
Eric Chartrain, International Paper's Vice President of Manufacturing and Technology, Europe, Middle East and Africa, said: "Negotiations are advancing which could result in a consortium of industrial companies to develop and operate a green energy plant in association with an energy efficient data centre.
"Both of these projects would provide local employment and an industrial presence into the future for Inverurie.
"While it is still quite early in the process, we are confident that we can bring the negotiations to a successful conclusion given the strategic importance of the site and the support we have received from everybody concerned."
A spokesman for the firm said there was a growing optimism the deal would go ahead creating new jobs for the area, although it is not yet clear how many.
