106 jobs lost as Smith Anderson calls in receivers

The company had been producing paper at the Fettykil Mills site in Leslie, Fife for 146 years, but despite a rescue plan launched last August, it has now called in the receivers.

” The directors will be co-operating with the joint receivers to see what can be done. In particular, we remain hopeful that they will secure a future for Securecycle. “
– Smith, Anderson & Co Ltd spokesman
The receivership refers to the papermaking business Smith, Anderson & Co Ltd – but not the packaging business owned by the Smith Anderson Group, which is called Smith Anderson Packaging Ltd.

It has resulted in the closure of two remaining paper machines with the loss of 106 jobs.

In a statement issued today, the company blamed rising energy costs that made the papermaking operation “unsustainable”. It also revealed that the group's ability to support its papermaking arm had been “curtailed due to its responsibilities to fund the final salary pension schemes”.

The Group reported an operating loss of 2.2 million in the last financial year.

A spokesman for Smith Anderson Group said: “The rescue plan that was implemented last year for Smith, Anderson & Co Ltd was completely undermined by ever-increasing energy costs. Unfortunately these costs have made our papermaking business unsustainable.”

Receivers
Blair Nimmo and Tony Friar of KPMG have been appointed as the receivers “with immediate effect”. They are currently assessing the future of the paper waste collection and confidential waste destruction service Securecycle, which also operates from the Fettykil Mills said.

The spokesman explained: “The directors will be co-operating with the joint receivers to see what can be done. In particular, we remain hopeful that they will secure a future for Securecycle, which has been a growing business.”

The Group's other subsidiary – Smith Anderson Packaging Ltd – is not affected by the receivership and will continue trading as normal, the company said. The firm employs 235 staff at Fettykil Mills and in Falkland, who make upwards of 45 million paper bags for major fast food and high street retailers every week.

“It should be emphasised that Smith Anderson Packaging Ltd is a strong, successful and completely separate business, with a strong order book, and will continue as normal,” the spokesman said.