Tullis Russell Papermakers Ltd. Goes Into Administration

Employee-owned Tullis was founded in 1809 and produces high quality paper board for use in cards, covers and premium packaging.

April 27, 2015 (BBC News) - Fife-based (Scotland) paper maker Tullis Russell has gone into administration with the loss of 325 jobs, and putting a further 149 at risk.

The Markinch-based firm has seen European exports suffer from the value of sterling in relation to the euro.

It has also been hit by rising raw material costs and by a major customer becoming insolvent.

Only last month, a new biomass plant was officially opened at Tullis's Markinch site.

The £200m facility was built by German energy firm RWE and was designed to meet all of the paper maker's electricity and steam requirements.

RWE said in a statement that the power plant could run independently of Tullis Russell, and would continue to operate.

Administrators KPMG said 325 Tullis employees were being made redundant with immediate effect, while the remaining 149 have been retained to complete some orders.

Employee-owned Tullis was founded in 1809 and produces high quality paper board for use in cards, covers and premium packaging.

The paper maker has incurred cumulative losses of £18.5m over the last five years, largely as a result of weakening demand and pressure on its margins.

Tullis directors had sought a buyer for the company last autumn, but failed to find one.

Tullis Russell Papermakers Limited is a wholly owned subsidiary of Tullis Russell Group Limited.

The group's Coating business based in Bollington, Cheshire and its Image Transfer business based in Ansan, Korea are not affected by the administration and continue to trade as normal.

The complete story is available at: BBC News

SOURCE: BBC News