PRODUCTION could end at a major East Lancashire mill as bosses battle rising costs and competition The proposal for Sappi paper mill in Feniscowles was revealed in a statement to the stockmarket yesterday Sappi Fine Paper Europe said that bosses were contemplating ending production in Blackburn and at a factory in Maastricht in the Netherlands.

A sales office would remain at the site, according to the statement.

A 90-day consultation is due to begin over the move which will put jobs at risk.

However it has not been revealed how many workers are employed at the Blackburn site. In recent years it as many as 250 have worked there.

The statement read: “As a result of continued overcapacity in the European coated fine paper market, it has not proved possible to recover the sharply increased costs of raw material and energy over recent years.

“Sappi has therefore undertaken a review of its European production activities.

“Despite our best efforts to curb costs, Blackburn Mill and paper machine no 5 at Maastricht Mill have been unable to generate acceptable returns.”

“Sappi has entered into a consultation process with employee representatives at both facilities with a view to cease production at Blackburn Mill and PM 5 at Maastricht Mill.”

The Blackburn Mill – formerly the Star Paper Mill – has been described as the most advanced paper machine of its kind in the United Kingdom and is capable of producing 120,000 tons of coated woodfree paper a year for the web printing market.