BPB to close paper mill

PLASTERBOARD manufacturer BPB today announced plans to close its last remaining paper mill with the loss of 270 jobs.

The closure of the Aberdeen mill would mark the end of an era for the firm, which has increasingly been buying materials from other companies to cut costs.

BPB said the site had become uncompetitive and would close this summer subject to consultations with staff. It comes about a year after production ceased at the firm's other paper mill in Purfleet, Essex.

The company traditionally used the mills to create paperboard, which is used in the process of making plasterboard. But to continue doing this profitably, BPB said it would have had to invest large sums of money.

BPB said it had signed a contract to buy substantial quantities of paperboard from packaging group DS Smith. Last year it struck a similar deal with a German partner.

The move will leave the firm with around 1,850 staff at nine main UK sites. BPB, which had owned the mill since 1952, operates 90 manufacturing plants worldwide and sells products such as insulation and ceiling tiles in more than 50 countries.

The group estimated that the mill closure would lead to a one-off charge of around £35m.