Page last updated at 10:06 GMT, Thursday, 8 January 2009

Dozens of jobs go at paper mill

Generic paper
The Selby plant has closed with the loss of 86 jobs.

A paper factory in North Yorkshire has stopped production with the loss of 86 jobs after managers blamed spiralling energy costs for the decision.

The future of Rigid Paper, based on Denison Road in Selby, had been in doubt for a number of years.

Managers at the firm's Belgian parent company, VPK Packaging, decided late last year to close the plant.

The Unite union said its closure after a two-year struggle to keep the factory open was "a tragedy".

In a statement issued last year the company said Rigid Paper was "suffering from the unfavourable conditions affecting the entire paper industry due to the increase in costs, primarily energy".

Unite union official Steve Hart said the plant's closure was a death knell for the community.

"It's a real tragedy and just another victim of the economic downturn

"A highly-skilled and long serving workforce were facing more and more pressure, the dark cloud from two years ago has finally settled on the plant."

Selby district Chamber of Trade described the closure of the paper recycling plant as "dreadful".



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