Energy Prices, UK’s Pension Crisis Leads to Closure of Scottish Paper Mill

Soaring gas and electricity prices, coupled with Britain’s pension funding crisis, has caused the closure of a recycled paper mill in Fife, Scotland. Smith, Anderson & Co. Ltd. announced closure of its Fettykill Mills operation, resulting in the loss of 106 jobs.

ICEM affiliate Amicus has been working with the owners of the 146-year-old mill to get the government to address high energy prices, rates which have risen 50% since last year when a restructuring plan was implemented in efforts to save the mill.

 “Once again, high energy prices and the pension crisis in the UK have contributed towards the decision to close another mill,” stated Amicus Assistant General Secretary Tony Burke. “This is a devastating blow to the paper industry in the UK and manufacturing in Scotland,” said Burke, adding the union’s priority now is to work with staff in order that they find other jobs.

Smith, Anderson & Co. will continue to run paper converting operations for the manufacture of paper bags from two Scottish plants, employing 245 staff, but the company’s recycling collection company, Securecycle, will likely be sold.

In Scotland over the past eight years, 11 paper mills have been closed, leaving only six in operation. In the past two years alone, 800 Scottish paperworkers have faced redundancies.