In April 27, Scottish-based Tullis Group announced in a group press release that its papermaking subsidiary, Tullis Russell Papermakers Ltd. had been placed into Administration by its directors.
The company manufactures high quality board for use in the cards, covers and premium packaging sectors.
Group CEO Chris Parr said 'This is a terribly sad day for employees and their families, the local community and everyone else associated with the business and its proud 206 year history. Since the global recession in 2008 demand across the traditional markets for Papermaker's products has fallen by 40%, our primary raw material, wood pulp, is now trading at consistently higher price levels than ever before and exchange rates have moved structurally against the business. The company has been able to generate new business within the luxury packaging and certain digital applications over this time, however annual volume is currently 14% lower than 2008 levels and the profit margin acheived is substantially weaker.”
Just one week after the insolvency announcement a number of parties have expressed interest for in a potential acquisition of Tullis Russell Papermakers Ltd, according to Euwid, and this information has been confirmed KPMG, the insolvency administrators. No formal offer has been made so far, but PG Paper, a Scottish-based trading company whose operations include paper, has divulged that it is one of these companies that is interested in acquiring Russel Tullis Papermakers.
