Receivership-hit Inveresk's St Cuthberts Paper Mill has been bought by the existing general manager securing all 41 jobs.
The business and assets of the site in Wells, Somerset, have been sold as a going concern to a newly formed company, St Cuthberts Mill, in a move that was led by Henrik Bernander.
It follows the appointment of joint receivers Ernst & Young to the company on 8 October. A spokeswoman for the receivers said the sale process was run by the Bristol office of Ernst and Young.
She added that they had received "strong interest" in the mill and that the ensuing sale had secured ongoing production.
A spokeswoman for St Cuthberts Mill said the move secured the start of "a new page of history for the paper mill", which has been making paper since the 1700's.
St Cuthberts Mill specialises in making paper for the fine art and photographic market. It manufactures specialist artist paper brands such as Bockingford, Somerset and Saunders Waterford, which are sold to customers both in the UK around the world.