By Lars Niven

CALDWELLS PAPER mill in Inverkeithing is set to close later this year with the loss of 150 jobs, it was confirmed yesterday.

The grim news was broken to staff by the Fife mill’s Swedish owners, Klippan, earlier this week.

Klippan bosses have blamed a slump in the world market for paper on their decision to pull out of Scotland.

Politicians reacted with dismay to the news and said they would do what they could to help save Inverkeithing’s last major employer.

However, given the current slump in the industry, some privately admit it may be the end of an era.

Speaking from the company’s headquarters in Malmo, Klippan’s chief executive Bengt Ostensson told The Courier, “It is a hard decision to make, but we just have to do it.

“We took the mill over from Inveresk last year and made a business plan to turn it around into a profitable business.

“We were around half way through the programme when we unfortunately encountered a very difficult market situation with the economy slowing down.”

Mr Ostensson said a number of events, including the war in Iraq, had contributed to the situation.

He added that Klippan had tried to revamp the business plan as late as last month in a last ditch attempt to save the mill.

That plan included shedding 40 jobs and Mr Ostensson travelled to Scotland last month to inform those involved why the redundancies were necessary.

“We revised the business plan a little bit more than a month ago and we were still convinced that we should develop the mill into a profitable business,” he said.

“But reality sometimes catches up with you and we don’t now see that we can turn it around.

“The losses have been even more pronounced than we expected. It would take more than a year to stop the bleeding and we can’t afford to do that.”

Mr Ostensson confirmed he was planning to fly to Scotland next week to meet management and staff at the doomed mill.

Inverkeithing East and North Queensferry Councillor Jim Philp, in whose ward the mill lies, said he was saddened at the news.

“I was contacted yesterday by the manager at the mill and he told me of the sad news,” he said.

“I already had concerns over the recent down-sizing plans with it being the last major industry in Inverkeithing.

“They were talking about 40 jobs, but now the whole lot is away.

“Unfortunately the paper industry ain’t what it once was.”

Mr Philp said he hoped to meet Mr Ostensson next week in an attempt to see if there was any hope of finding a buyer for the paper mill.

“My initial concept is that we can actually fight to retain jobs.”

Mr Philp continued, “I would hope that between myself, Helen Eadie (Dunfermline East MSP) and Gordon Brown (Dunfermline East MP) we can save it, or maybe encourage someone else to take the business over.

“We will make every effort to keep the workforce here.”

Mrs Eadie said yesterday, “I have asked for a meeting to be set up with the company to see if there is anything we can do.

“I am very worried about Inverkeithing and I wrote to the chief executive of Fife Council just a month ago to express my concern about the number of commercial properties lying empty.”

Fife Council’s Labour administration leader Councillor Anne McGovern last night expressed her regret.

“It’s little consolation to the 150 men and women who are facing redundancy, but because of Fife’s track record in fighting back after job losses, we have an excellent team ready to help them back into work.”