Arjowiggins does not expect that demand for its products will fully recover after the setbacks caused by the Covid-19 pandemic. The company has therefore announced layoffs at the Stoneywood mill.
Arjowiggins’ Stoneywood woodfree paper mill in Scotland has been struggling with a difficult market environment since the Covid-19 outbreak. The company, therefore, announced its decision to restructure the mill and cut jobs. It has entered in consultations with employee representatives concerning 18 percent of its workforce, which corresponds to around 70 jobs that might be eliminated. The Stoneywood mill currently employs some 400 people.
The company explained it had made losses over the last six months, the coronavirus pandemic having a significant impact on business. “Although we expect to see some recovery next year we do not anticipate a full return to pre-Covid conditions and our pre-Covid plans,” said Jonathan Mitchell, CEO of Arjowiggins in Scotland. A restructuring was necessary in order to match capacity with expected demand, he added. In April, the mill was forced to extend a maintenance downtime and take a longer break because of the pandemic and the governmental advice that all non-essential business premises be closed.
The Stoneywood mill produces woodfree paper for greeting cards, labels, brochures, and luxury packaging, and reportedly has a capacity of 55,000 tpy on four machines.