UK Deinking Mill Sold

Inveresk PLC completed the sale of its site at Kilbagie Mills, Scotland, together with its deinking plant on that site to Kilbagie Recycled Fibres Ltd, a unit of LPC Group PLC of Leicester.

Inveresk announced the closure of its Kilbagie plant last September, but did not specify a buyer for the site.

The company said 22 employees associated with the deinking plant have transferred to Kilbagie Recycled Fibres, and Inveresk will use the money from the sale to reduce debt.

The two papermaking machines at the site are not included in the sale and will be relocated to other Inveresk mills in Scotland, it said.

Ken Minton, executive chairman of Inveresk said: "From today production of graphic paper is concentrated on the Caldwells site where all three paper making machines will run continuously and will produce the same volume which was previously produced from the two mills."

“The completion on schedule of the disposal of the Kilbagie site and deinking plant, and the cessation of production of graphic papers thereat,  marks a further major step in the turn round of the Inveresk Group.   From today production of graphic paper is concentrated on the Caldwells site where all three paper making machines will run continuously and will produce the same volume which was previously produced from the two mills.   The two valuable paper machines released from duty at Kilbagie will be re-installed at our other mills in Scotland where they will augment capacity needed for our growing sales demand," Minton added.