The mill, best known for its links with AbitibiBowater Recycling Europe and Cheshire Recycling, produces 220,000 tonnes of newsprint a year, mainly for use by UK newspaper publishers. Today (February 2 2010) accountants Ernst & Young announced that Tom Jack, Roy Bailey and Alan Bloom from the firm had been appointed as “joint administrators to Bridgewater Paper Company Limited (BPCL) at the request of the directors.”
The administrators emphasised that Cheshire Recycling Ltd and Abitibi-Consolidated Europe SA, subsidiaries of BPCL are not affected by the administration but it is understood that the sale of the businesses is a possibility. 
From Canada, AbitibiBowater (parent company to the UK operation) said: “AbitibiBowater announced today that its Bridgewater Paper Company Limited (“BPCL”) subsidiary has filed for administration in the United Kingdom. The BPCL Board of Directors made this decision only after all other options to keep these UK operations solvent were exhausted.”
Subsidiaries
The news that subsidiaries are not involved in the mill administration are expected to be welcomed by local authorities. AbitibiBowater Recycling Europe is particularly involved in the collection of recyclable materials from the kerbside for local authorities across the UK and notably in the Midlands, Yorkshire and North East England.
The Bridgewater mill employs 300 people and sells both UK and Canadian produced paper and Tom Jack, joint administrator, said the administrators were looking for a buyer.
He said: “We are continuing to trade the business as we explore all options, which include looking for a buyer for the business as a going concern. We are grateful for the support of all customers. employees and suppliers as we continue to satisfy customer demands.”
The entire UK newsprint sector is facing pressure because of the recession with a fall in demand for newsprint and relatively high prices for raw materials. This is in part due to the construction of the Palm Paper mill in King's Lynn which is now supplying limited volumes of newsprint to UK newspaper publishers. The mill continues to undergo trials ahead of reaching full capacity within two years.
There is some doubt among the sector as to whether a buyer for the mill can be found, partly because of the age of the mill although it has received som investment in recent years and is said to have a good reputation for a quality product.
Challenges
Ron Humphreys, managing director of the collection and recycling business Abitibi Consolidated Recycling Europe, told letsrecycle.com that the mill had faced a number of fundamental challenges. “I am sad to see the plant being in this position and I hope that a survival plan will emerge.”
With regard to the collection and sales work carried out by the recycling business, Mr Humphreys confirmed that this operated as a separate entity and it was definitely a case of business as usual.
“We continue to trade profitably and are successfully collecting a variety of materials for many local authorities.”
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