Deal to save threatened Stoneywood paper mill falls through

In January, the Aberdeen company went into administration - putting nearly 500 jobs at risk.

Aberdeen: A sale of Stoneywood Mill has fallen through. <strong>STV</strong>
Aberdeen: A sale of Stoneywood Mill has fallen through. STV

Negotiations with a preferred bidder for an Aberdeen paper mill have fallen through.

In January, Stoneywood Mill went into administration – putting nearly 500 jobs at risk – after owner Arjowiggins failed to sell the plant in a deal before Christmas.

The company claimed an increase in pulp prices globally – along with the collapse of the deal – were the reasons the 249-year-old site was placed into administration.

In March it was revealed that a preferred bidder had been selected, however administrators announced on Tuesday that negotiations had ended without a sale.

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A spokesman from FRP Advisory said: “The joint administrators have begun discussions with a management buyout team (MBO) after negotiations with a preferred bidder ended without a sale.

“Discussions will now be progressed with the MBO team, Scottish Enterprise and other interested parties over the coming weeks to explore whether a sale can be secured.

“In the meantime, it remains ‘business as usual’ and the plant continues to operate.”


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