Aylesford Newsprint, which produces 400,000 tonnes of newsprint annually from recycled newspapers and magazines, is seeking to go into administration.
The company told letsrecycle.com that it had made the announcement to staff this morning.
Aylesford is a major buyer of material from local authority sources in the UK, much of which is supplied via waste management companies.
The company said that it is “making an application to the courts to go into administration” and expects this to occur later today. The administrators are expected to be KPMG.
Companies in the sector have been facing weaker demand for newsprint as a result of falling newspaper sales. In the UK, all newsprint produced is made from used newspapers and magazines and this morning Kent-based Aylesford closed its door to deliveries of used newspapers and magazines for recycling.
There are two other manufacturers of used newspapers in the UK: Palm in Norfolk and UPM in North Wales.
The potential demise of Aylesford, which was bought by its current owners, a finance company, for virtually nothing from SCA and Mondi, is likely to boost the other mills.
UPM has already take action to close one of its two machines in North Wales. Palm owns the most modern mill in the UK at King’s Lynn with its German-owned parent investing heavily to build the plant.
Martland Holdings is the owner of Aylesford Newsprint. In August 2014 the then managing director Ian Broxup left the company with executive chairman Landry Kouakou taking over day-to-day control as chief executive officer (see letsrecycle.com story).