Paper company that employs almost 50 people in North Essex goes into administration

Arjobex Limited in Clacton

Arjobex Limited in Clacton - Credit: Archant

Creative paper innovators Arjowiggins went into administration today, putting 48 regional jobs at risk.

Britain’s largest union, Unite, has about 600 members at Arjowiggins, which operates mills at Stoneywood in Aberdeen, Chartham in Kent and Clacton, Essex. There is also a head office at Basingstoke, Hampshire.

In Clacton, 48 people are employed at the company’s Arjobex Limited facility on Stephenson Rd.

Arjobex specialises in the production and sales of synthetic paper under the established and global brand Polyart.

A global leader in the manufacturing of synthetic paper, Arbojex has been in the printing industry for more than 40 years.

MORE: Mystery surrounds the collapsed company that houses billionaires’ private jets at StanstedUnite said that it believed that the administration was triggered by problems experienced by French-owned parent company Sequana, which had been involved in a costly legal dispute with British American Tobacco.

Unite national officer for the paper industry Louisa Bull said: “Arjowiggins is a vibrant and innovative creative paper company, and we can see a bright future as it is an attractive proposition for a potential buyer.

“Unite is committed to working with the administrators and the employers’ body, the Confederation of Paper Industries to find a new owner.

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“We have had a good relationship with the company over many years and this is a good basis for exploring options for a new purchaser.

“The administrators being called in should be seen in the context of the parent company’s Sequana past legal problems. It is not related to Brexit uncertainty.

“However, we appreciate that this is a very difficult time for our members and their families, and Unite will be giving them maximum support in the days and weeks ahead.”

A Sequana statement said: “Following the receivership proceedings opened in France at the request of Arjowiggins and some of its subsidiaries, the boards of directors of some of Arjowiggins’ companies in the UK have decided to file notices of appointment of an Administrator for the following companies AW UK Holdings Ltd, Arjo Wiggins Fine Papers Ltd, ArjoWiggins Chartham Ltd, AW UK Holdings Ltd, Arjowiggins Sourcing Ltd, Arjobex Ltd and Performance Papers Ltd.

“These companies operate the mills of Stoneywood, Chartham and Clacton.

“Under the aegis of administrators, these procedures will help support the measures undertaken to find buyers for Arjowiggins’ businesses.”