Taskforce details £6m spend post Tullis Russell administration

The taskforce established by the Scottish government in the wake of the Tullis Russell Papermakers administration has agreed an action plan to spend the £6m pledged in state assistance.

This plan details how the funding, announced by First Minister Nicola Sturgeon within hours of the closure of the Tullis Russell paper mill in Markinch, Fife in April, will be spent.

This includes:

  • £1.5m for a training fund to support those made redundant in mid-Fife, including the Tullis Russell workers. 
  • £2m for support for companies in the Tullis Russell supply chain, support for growth businesses, a new business accelerator pilot programme targeting support at selected businesses and establishing a central Fife business investment fund.
  • £250,000 from additional resources to support community and town centre projects in Glenrothes and the most affected communities in central Fife.
  • £2.25m to explore future uses of the Tullis Russell site, including the biomass heat generation and developments at Queensway Industrial Estate and other industrial estates in Glenrothes and Kirkcaldy as well as a long-term strategic assessment of the mid-Fife economy.

At its fourth meeting yesterday the Fife Taskforce heard that of the 403 Tullis Russell employees made redundant, 143 have secured employment, 286 have requested training from support agency Opportunities Fife, and of these, 142 people have had their requests approved. Opportunities Fife has launched a local campaign to encourage people to access help.

It also had an update on the administration from Blair Nimmo and Tony Friar of KPMG, who were unable to find a buyer for the business in May, despite a previously encouraging level of interest.

After the meeting co-chairs deputy First Minister John Swinney and Fife Council leader David Ross said they were “disappointed” a buyer for the Markinch mill could not be found.

“We want to make sure that we collectively do everything possible to help those most affected in a rapid, accessible and effective way, and we will make sure this continues to be done.

“We are confident that the agreed allocation and distribution of the £6m Scottish government funding will target the right places and reach the right people.

 “Our focus is on actions that continue to support people, business and communities affected. The initiatives set out in our Action Plan will help deliver economic growth in Glenrothes and Central Fife. Delivering against these actions is now key for us over the months ahead.”

Tullis Russell Papermakers, part of the Tullis Russell Group which continues to trade, went into administration on 27 April, after building up losses of £18.5m over five years. It had operated on the same site since 1809.

Group chief executive Chris Parr blamed a drop in demand of 40%, the higher cost of wood pulp and unfavourable exchange rates but said the company’s position finally became untenable when Paperlinx went into administration on April 1.

So far KPMG has sold the worldwide intellectual property rights to the Naturalis fine uncoated papers brand to GF Smith.