Paper mill Tullis Russell to cut 43 jobs in Markinch
Fife paper mill Tullis Russell has announced that 43 jobs at its Markinch plant are to be axed.
- By Aileen Robertson
- Published in the Courier : 10.08.11
- Published online : 10.08.11 @ 11.52am
The company, which is building a £200m biomass generator at its Fife site, blamed rocketing energy costs and tough trading conditions.
A consultation period of at least 30 days has been launched.
Those affected are from "across all areas" of the employee-owned firm.
Managing director Steve Moss described the redundancies as "painful" but said they had been necessary to restructure the business to secure the future of the remaining 500-strong workforce.
He said, "It is with huge regret that we enter into this consultation over redundancies here at Markinch.
"However, we need to safeguard the other 500-plus jobs and make sure that we remain competitive in the light of very challenging conditions."
He added, "Unprecedented high costs, particularly in energy, combined with extremely weak demand in our traditional graphical markets, are putting real pressure on our financial performance.
"With no significant prospect of a rebound in demand, we have no choice but to take action to align our cost base more closely with the new reality of our marketplace."
'Continue to invest'
Mr Moss said, "We will do everything in our power to help those employees affected and will also work with the relevant public agencies to provide support.
"At the same time as we are making these painful redundancies and working to reduce costs across the business, we continue to invest in our longer-term strategy.
"The building of the new biomass plant at our site, due to be operational towards the end of 2012, reinforces our optimism and belief in the future of our business."
Tullis Russell hopes to boost its business by concentrating on supplying environmentally-friendly branded boards to the cards, covers and premium packaging markets worldwide.
Glenrothes MP Lindsay Roy described the job losses as a "drastic step."
He said, "Sadly the company, like so many others, is not immune from market forces and has been forced into taking this drastic step to ensure the business remains viable.
"It is a worrying time, but I know that Tullis Russell will do its utmost to help those involved."
The redundancies are a major blow to the 200-year-old company, which in 2009 just squeezed into the Sunday Times HSBC Top Track 250 league table.
200-year history
Mid Fife and Glenrothes MSP Tricia Marwick said, "This news is a huge blow to the individuals involved and their families and I will do all I can to assist them at this difficult time.
"This situation is most regrettable. I understand that Tullis Russell, like many other businesses, is experiencing the effect of lack of demand for their products because of the current economic crisis.
"It is crucial to Glenrothes that Tullis Russell has a long-term sustainable future. It is my hope that Tullis Russell can consolidate and start recruiting again when the market improves."
Councillor John Beare, who lives in Markinch, added, "Having been through a redundancy myself, I know how worrying a time it can be.
"It is no surprise that because Tullis Russell are in a highly competitive marketplace, the effects of increasing costs for raw materials and energy in addition to currency fluctuations are affecting their bottom line.
"As Tullis Russell is a company owned by its employees, I know that every step to minimise job losses will be taken and that those who may lose their jobs will be given every support by the company."
He added, "The company has survived for more than 200 years, through recessions, depressions and wars."
09.30pm - 11.08.2011 mr mow - Glenrothes, scotland Report This
The sooner that dump shuts the better! its a noisy dorty place making the value of local houses drop through the floor with there constant steam venting
05.17am - 12.08.2011 mrs mow - glenrothes, scotland Report This
i totally agree hahaha
11.56am - 12.08.2011 Disgruntled - Kirkcaldy, Scotland Report This
The mill's been there longer than you and it will be there long after your gone. Get over it! Its the biggest employer in the area. This is sad news about job losses. Hopefully things will improve when the new bio-mass plant is up and running.
04.44pm - 29.08.2011 wilson, glenrothes - glenrothes, great britain Report This
How sad and narrow-minded that the first thing to come to your mind is of pollution, never mind the fact that this industry has employed generations of family over the years and hopefully will be able to survive into the future. More houses will be no doubt be built - more people, pollution & noise
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