Arjowiggins Mills go into adminstration

https://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-63001007

There is very sad news that the Arjowiggins paper mills in the UK have been placed into administration. There are two paper mills involved employing over 460 people, the mills are in Stoneywood (near Aberdeen) and Chartham in Kent. The same Arjowiggins mills were last in administration in 2019 and the mills in France were either closed or sold but these two UK mills were bought by the management in a deal which was backed to the tune of £7million by Scottish Enterprise. The group also has overseas subsidiaries include the Guarro Casas mill in Spain, and Quzhou mill in China, neither of which is included in the insolvency proceedings ( ...which is a bit strange!)

https://www.printweek.com/news/article/administrators-take-charge-at-historic-arjo-mills

Arjowiggins manufacture many of the brands that readers of this blog will be familiar with including the Curious Collection, Keaykolour, Popset, Conqueror, Rives, which are shown in their lavish swatchbooks (design by North)...

As a result of this situation there may well be shortages for some of these papers. At Fenner Paper, we are increasing our stockholding, especially of our Stardream range (which is a competitor product to Curious Metallics) our Zeta range of premium business stationery paper, our Colorset text and cover coloured paper range and of course our Spectral transparent paper range.

Posted by Justin Hobson 23.09.2022  

ArjoWiggins mills saved in UK

Today it has been announced that the two remaining UK paper mills of the ArjoWiggins group have been bought in a buyout by the management of the failed mills. This is excellent news for the UK paper industry, saving over 500 jobs.

 

You can read more here on the Printweek site:

https://www.printweek.com/print-week/news/1168845/arjowiggins-uk-businesses-acquired-in-mbo

I have previously written about ArjoWiggins when they went into administration here and when their mill in France closed here, taking with them products that many were familiar with including Cyclus, Cocoon, Chromomatt, Satimatt etc...

This buyout involves two UK paper mills, Stoneywood, based in Scotland and Chartham, based in Kent. This is very positive news for the UK and it is great that the management finally managed to convince the banks that it was a risk worth taking. Apparently significant financial backing has also been received from the economic development agency Scottish Enterprise. In these strange political times, it will be interesting to see how the Scottish parliament will view the Scottish development agency propping up a paper mill based in Kent! 

 

Recent history demonstrates that many paper mills that come out of administration often don't make it and go bust again, Let's hope that is not the case for these mills and they can make a positive contribution to the UK economy.

Posted by Justin Hobson 25.09.2019

Cyclus manufacturer to close

Last Friday, Arjowiggins announced that it is to close it's Dalum mill in Odense, Denmark, by the end of 2012. Dalum is the paper mill that makes Cyclus which I know will be familiar with many readers of this blog. The mill, which currently produces 150,000 tonnes of paper a year was one one of the pioneers of 100% recycled papers.

Dalum Papirfabrik (De forenede) or Danish Paper, as it was known in the UK, was taken over by Stora in 1990 and in 1991 started to use recycled fibres. Stora merged with Enso and in 1999, StoraEnso (the new company name!) sold Dalum to a Danish group of investors for €28 million.

Jens Kampmann

Chairman (and former Danish minister for the environment) of the newly formed Dalum Papir,  Jens Kampmann, further developed the mill's recycled offering in the early 2000's and boasted "Dalum Papir has undergone a very impressive development over the past few years to become what we believe is the most environmentally friendly paper mill in the world."

Dalum was purchased by ArjoWiggins in 2007 for the grand sum of €63.5 million.

Arjowiggins has announced that it is to close Dalum by the end of 2012 to compensate for overcapacity in the market as European paper demand has been decreasing by around 6% annually for several years. There are currently 260 staff employed at the mill.

Here, at Fenner Paper, we have dealt with the mill for many years (even before they were producing recycled paper) and we are very sorry to hear this news. Our thanks and  good wishes go to all the employees at the mill and wish them the very best for the future and with new employment opportunities.

 

http://www.dalumpapir.dk/en/Home

http://www.arjowigginsgraphic.com/

Posted by Justin Hobson 19.09.2012

Toby Marchant exits Paperlinx

Yesterday, Paperlinx announced the resignation of its chief executive, Toby Marchant (did he jump or was he pushed?) For those that don't know, he's been the guy at the head of Australian based Paperlinx. If you're wondering what that's got to do with this blog and you - it's because they own Robert Horne, Howard Smith and The Paper Co -names of UK paper merchants which many of you will be familiar with. 

Toby Marchant started as a paper merchant in the UK, eventually becoming Managing Director of the loss making Modo Merchants (now closed down). He jumped ship at the end of the 90's to the profitable Robert Horne Group and after overseeing years of declining profitability, he was promoted (!) through the ranks of  the parent company, Paperlinx, ending up as CEO (...nice work!)

For Paperlinx, which a decade ago was worth more than (Aus)$2 Billion (-yes, you did read that correctly), there are many issues - it now has a market capitalisation of only (Aus)$25 Million (Source: Sydney Morning Herald) - having recently sold off operations in South Africa, Italy and Eastern Europe, it is contending with hostile shareholders trying to reverse several years of corporate losses and it's bankers. Suppliers appear to be withdrawing products; Zanders have withdrawn Chromolux, ArjoWiggins have stopped supplying their recycled ranges, Cordenons have withdrawn their Stardream range and suppliers are struggling to get credit insurance cover. Other executives including Malcolm Lane-Ley, Managing Director of Howard Smith and The PaperCo is also leaving at the end of this month.

Robert Horne Paper was the revered company in the UK paper industry, as a supplier, customer and employer. I was fortunate enough to meet Kenneth Horne in 1995 and I even bought the book he published "Somebody said that it couldn't be done" which documented his three decades at the helm of the company founded by his grandfather - and make no mistake, it was a great company. It will certainly be sad for the UK industry if the end result of Paperlinx involvement means that this and the sister companies simply disappear.

Hundreds (if not thousands) of jobs have been lost in the UK paper industry in recent years. I hope that Toby Marchant, who is set to receive a "banker style" golden goodbye of one year's salary (after only 2 years as CEO) will reflect on this whilst lying on his sun lounger!

http://www.smh.com.au/business/news-takes-a-page-from-paperlinx-20120717-228fo.html
www.paperlinx.com
http://www.printweek.com/bulletin/printweekdailybulletin/article/1141767/paperlinxs-toby-marchant-give-interim-chief-executive-dave-allen/

Posted by Justin Hobson 18.07.2012

28th September Update
Printweek reports today that Marchant ended his employment with Paperlinx on a salary of £363,545 after he took a 15% voluntary pay cut on 1 April (April Fools day!) this year. Tobes gets 12 months salary as part of his "mutual" decision to leave the company. On top of this, he was given £26,000 in accrued entitlements to bonuses for completed asset sales in 2011/2012 and £21,648 to compensate for untaken annual leave. I'm sure everyone in Northampton will be pleased to know that he'll be comfortably off in his retirement.
http://www.printweek.com/news/1152474/Paperlinx-AGM-postponed-chairman-leaves-prematurely/?DCMP=ILC-SEARCH

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10th October 2012 - Important update
A link to an Australian website run by a Paperlinx shareholder has been REMOVED from this post, following a legal notice sent to me by a solicitor acting for Paperlinx Limited.
I have written about this on the following post:
http://justinsamazingworldatfennerpaper.blogspot.co.uk/2012/10/paperlinx-gets-stroppy.html
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As with everything written on this blog, the views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to Fenner Paper Company Ltd!